Visa: In-store sales make up majority of holiday spending
Overall retail spending is up nearly 5% this year, with a bulk of the spending taking place in-store.
That’s according to the Retail Spend Monitor from Visa Consulting & Analytics, which reflects the total retail sales activity for the seven-week period starting on Nov. 1 and uses a subset of Visa payments network data in the United States coupled with survey-based estimates for other forms of payment.
Total holiday retail spend in the U.S. rose 4.8% year-over-year during the seven-week period. More than three-quarters (77%) of the total payment volume was in-store versus 23% online, showing the in-store experience remains important for the consumer.
Total retail spend in stores grew by 4.1% (versus 1.6% last year), while online retail shopping increased by 7.1% (versus 10.3% last year).
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"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.”
During the period, the electronics sector experienced increased sales, increasing 4.2% compared to 2.8% last year. Clothing and accessories saw a 5% increase in sales compared to 2.4% last year.
Building materials sales increased by 4.7% (versus a negative 3.9% last year), indicating consumers turned their attention to their homes this holiday season.
Visa’s data didn’t just reveal increased holiday sales in the U.S. Brazil saw a 12.2% year-over-year increase in retail spending, while South Africa experienced 7.0% growth. Both regions enjoyed double-digit growth across all five merchant categories. The U.K. experienced a 2.3% rise in spending, and Australia saw a 7.4% increase.
