Visa, a global leader in digital payments, today released its annual Retail Spend Monitor from Visa Consulting & Analytics (VCA), offering a comprehensive view of UK holiday retail activity. Preliminary data shows that overall holiday retail spending increased 3.6% year over year across all payment types, including cash. These figures are not adjusted for inflation.

Expert analysis from Visa Consulting & Analytics of VisaNet data, which represents 329 billion transactions a year and 4.9 billion credentials worldwide, revealed key highlights in the U.K.:

• In-store shopping remains strong: 57.4% of holiday payment volume was in physical stores.
• E-commerce continues to expand: Online retail spending rose 5.8%, driven by early-season promotions and convenience.
• Electronics sales increased: 8.4% uptick reflecting a strong demand for personal tech.
• Clothing purchases rose: 3.0% lift, reflecting gradual but steady improvement in consumers' real disposable income over the last 18 months.
• Department Stores: 3.9%, demonstrating continued interest from consumers investing in their homes.
• Global trends: Holiday spending momentum extended beyond the U.K. with notable increases in US (+4.2%), Canada (+4.4%), and  Australia (+5.0%) reflecting strong consumer purchasing power across the globe.

The VCA Retail Spend Monitor analyses retail sales activity over a seven-week period beginning November 1, using a subset of Visa payments network data in the U.K. and survey-based estimates for other payment methods.

“Visa Consulting & Analytics combines deep industry expertise to help clients identify trends and make data-driven decisions,” said Alicia Ngomo Fernandez, head of VCA UK and Ireland. “Insights from the Retail Spend Monitor help businesses adapt to changing consumer behaviours and prepare for the rapidly evolving future of commerce.”

“Retailers delivered seamless shopping experiences both in stores and online, and consumers responded with enthusiasm,” said Adolfo Laurenti, chief economist at Visa Europe. “This season also marked a turning point, with artificial intelligence beginning to shape how people discover products, compare prices, and interact with offers. This led to a more informed, more intentional consumer.”

The VCA Retail Spend Monitor is produced by Visa Consulting & Analytics’ (VCA) global network of thousands of consultants, data scientists, and product experts from around the world. In the last year, VCA delivered more than 4,000 consulting engagements that helped clients realise an estimated $6 billion in incremental revenue as a result.