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Holiday Sales Rise About 4% as Visa, Mastercard Point to Online Gains and Electronics Strength

Elevated prices, heavier reliance on credit cards plus BNPL, shaped more selective shopping.

Overview

  • Visa’s preliminary data show U.S. retail sales up 4.2% year over year for Nov. 1–Dec. 21, not adjusted for inflation and excluding autos, gasoline and restaurants, with real growth around 2.2% by Visa’s estimate.
  • Mastercard reports a 3.9% increase over the same period, noting results are not inflation‑adjusted and exclude automotive sales as SpendingPulse tracks retail with some food service activity.
  • E‑commerce drove the gains with online sales up 7.8% as in‑store transactions still dominated at 73% of payment volume, and networks highlighted growing use of AI tools for price comparisons and product discovery.
  • Electronics led category growth at roughly 5.8% followed by apparel at about 5.3% and general merchandise near 3.7%, while home improvement slipped 1% and furniture ticked up 0.8%.
  • Financing played a larger role as 37% of Americans took on holiday debt averaging $1,223 and overall credit card balances hit a record $1.23 trillion, with surveys also finding many planned fewer gifts due to tariff‑related price pressures.