UK retail spending rises 2.3% ahead of Christmas, Visa finds

UK retail spending over the holiday period has increased 2.3% year-on-year, according to Visa’s first-ever Retail Spend Monitor, which analysed spending over the seven-week period beginning 1 November, 2024. The VCA Retail Spend Monitor reports on national retail sales across all payment types. The findings are based on aggregate sales activity in the Visa payments network, coupled with survey-based estimates for other forms of payment. According to the data, online shopping increased by 6.1%, with consumers increasingly relying on the convenience of online shopping for holiday shopping. Out of total retail spend in the UK, 41% of retail spending occurred online, marking a further acceleration from the already elevated levels experienced in 2023. However, 59% of total payment volume was in store, showing resilience of physical in-store experiences. In addition, large department stores saw an increase of 6.9%, driven primarily by Black Friday spend. A late Black Friday, which this year spilled into December and came closer to the Christmas shopping time, resulted in early shopping, which contributed to a decrease in shopping activity from mid-December. More specifically, the monitor also showed a 2% decline in sales for clothing and accessories. In other retail categories, “modest” growth was observed, such as an increase of 1.3% in electronics. Alicia Ngomo Fernandez, head of UK consulting at Visa, said: “This holiday season we observed a tentative rebound in consumer confidence, reflected in moderate growth in overall sales and stronger online shopping – as well as solid growth in spending at department stores. “Price conscious consumers took advantage of a late Black Friday to stock up on presents, leading to an early surge in shopping followed by a decrease in spend mid-month. Despite the recent slowdown, the growth in retail demonstrates the adaptability and the resilience of both consumers and retailers.”