Visa Report: U.S. Holiday Retail Spending Grows by 4.8% in 2024

Visa, a global leader in digital payments, has unveiled its inaugural Retail Spend Monitor through Visa Consulting & Analytics (VCA), offering a comprehensive look at holiday retail spending trends in the U.S. This year’s data reveals a 4.8% year-over-year increase in holiday retail spending, spanning all payment methods, including cash and checks, without adjusting for inflation.

“This holiday shopping season, we’re seeing increasing consumer confidence as people sought out in-store experiences – and went online – to purchase gifts and celebrate the holidays with friends and family,” said Wayne Best, Chief Economist at Visa. “This spending growth demonstrates the adaptability of both consumers and retailers and the overall strength of the economy.”

Key Insights from Visa’s Holiday Spending Report:

Consumers Return to In-Store Shopping

Out of the total holiday retail spend in the U.S., 77% of payment volume occurred in physical stores, highlighting the enduring appeal of the in-store shopping experience. This marks a significant growth of 4.1% in total retail spend in stores, compared to 1.6% last year. These numbers reaffirm the importance of brick-and-mortar locations during the holiday season.

Online Shopping Maintains Momentum

Online retail shopping continued its upward trajectory, increasing by 7.1%. While this reflects slightly slower growth compared to last year’s 10.3%, it underscores the convenience and reliability of e-commerce for holiday shoppers. Consumers increasingly value the ease of online shopping for finding deals and avoiding the holiday rush.

Sector-Specific Growth

Several retail categories experienced robust growth:

  • Electronics: Sales in the electronics sector rose by 4.2%, up from 2.8% last year, signaling strong demand for gadgets and tech accessories.
  • Clothing and Accessories: Sales in this category saw a 5.0% increase, doubling last year’s growth rate of 2.4%.
  • Building Materials: This segment experienced a remarkable turnaround, with a 4.7% growth compared to a negative 3.9% last year, indicating heightened consumer interest in home improvement projects during the holidays.

International Spending Trends

Holiday spending growth was not limited to the U.S.:

  • Brazil: A 12.2% year-over-year increase, with double-digit growth across all major retail categories.
  • South Africa: Spending rose by 7.0%, driven by strong performance in key sectors.
  • United Kingdom: A 2.3% increase in overall holiday spending.
  • Australia: Holiday spending surged by 7.4%, reflecting robust consumer activity.

Fraud Prevention Efforts

Visa’s ongoing commitment to secure transactions was evident during the holiday season. The company reported blocking nearly double the amount of suspected fraud during the Black Friday and Cyber Monday weekend in 2024 compared to 2023. These efforts highlight Visa’s role in ensuring a safe and seamless shopping experience for consumers and retailers alike.

Insights from Visa Consulting & Analytics

The Retail Spend Monitor covers the seven-week period starting November 1, leveraging data from Visa’s extensive payments network, which processes 234 billion transactions annually. The insights are enriched with survey-based estimates for non-Visa payment methods, providing a holistic view of retail activity.

Kate Manfred, North America Head of Advisory Services at Visa, emphasized the value of these insights: “With Visa Consulting & Analytics expertise and the power of VisaNet’s data, our clients can make informed business decisions that drive growth. Comprehensive analysis like the Retail Spend Monitor equips retailers with critical insights into consumer behavior, enabling strategic planning and effective market positioning.”

In 2024, VCA delivered over 3,000 consulting engagements, nearly double the previous year’s volume, helping clients achieve an estimated $5 billion in incremental revenue. The team, comprising more than 1,500 consultants, economists, and data scientists, operates across 75 countries, making VCA a global leader in data-driven consulting.

About Visa

Visa (NYSE: V) is a world leader in digital payments, connecting consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. The company’s mission is to foster inclusive economic growth by enabling secure and convenient transactions through its innovative payment network.

Visa’s commitment to innovation extends to its advisory services, which leverage the company’s vast data network to provide actionable insights. By empowering clients to understand and adapt to evolving market trends, Visa plays a pivotal role in shaping the future of commerce.

For more information about Visa Consulting & Analytics and its range of services, visit Visa.com.

Disclaimer

The views expressed in this report are those of the Visa Consulting & Analytics team and may not necessarily reflect the official stance of Visa or its affiliates. This report is intended for informational purposes and should not be construed as financial, legal, or operational advice. Visa disclaims any liability arising from reliance on this information.

Visa’s Retail Spend Monitor underscores the resilience of both consumers and retailers during the 2024 holiday season. By analyzing key trends and leveraging cutting-edge data insights, Visa continues to empower businesses to navigate the complexities of modern commerce and thrive in an ever-evolving marketplace.

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