Spending grows despite tighter household budgets
U.S. retail sales have climbed by roughly 4% so far this holiday season, reflecting a consumer base that is spending carefully while still making room for discretionary purchases. Preliminary data released by show that demand remained resilient through December, even as households faced ongoing budget pressures.
Both companies highlighted that shoppers were more intentional than in previous years, increasingly relying on price comparisons, digital tools and promotions to manage spending. Consumers also started their holiday shopping earlier, taking advantage of discounts to secure better value.
Electronics and apparel lead demand
Visa reported that U.S. retail spending, excluding autos, gasoline and restaurants, rose 4.2% between November 1 and December 21, slightly below its earlier forecast but still signaling solid growth. Mastercard, which also includes food service sales, recorded a 3.9% year-on-year increase over the same period, exceeding its prior expectations.
Electronics emerged as the strongest category, with sales of items such as televisions and smartphones increasing close to 6% in Visa’s data. Clothing and accessories followed closely, supported by colder weather and seasonal promotions that encouraged consumers to обновить their wardrobes. Jewelry also attracted stronger interest compared with last year.
Online sales grow faster, stores still dominate
Early promotions and the convenience of shopping from home helped drive online sales, which expanded at a faster pace than purchases made in physical stores. Even so, brick-and-mortar outlets continued to account for the majority of transactions, representing nearly three quarters of total spending, according to Visa.
The combined data from billions of transactions across both payment networks suggest that while inflation-adjusted figures were not provided, consumer confidence and spending momentum carried into the final weeks of the year.
