December 24, 2025
Americans Spent More This Holiday Season, Across Stores, Screens, and Experiences
Holiday spending in the U.S. went up this year compared to last, even as people felt more uneasy about the economy. According to new data from Visa and Klarna, shoppers were still willing to spend, but they were more careful about where their money went. Instead of splurging, many focused on practical items, everyday categories, and experiences they felt were worth it.
Overall U.S. holiday retail spending rose by just over 4% year over year. Most of that spending still happened in physical stores, which made up almost 75% of all retail payments during the season. In-store shopping remained popular for last-minute gifts, returns, and larger purchases that people preferred to see in person.
Clicks, Stores, and Practical Buys
Online retail spending also grew, increasing by nearly 8%, with digital channels benefiting from early promotional activity and convenience, particularly for repeat purchases and gift items. Rather than replacing stores, online shopping acted as a complement, with consumers moving between channels based on timing and need.
Among traditional retail categories, electronics recorded some of the strongest growth of the season. Consumers directed more spending toward devices tied to daily use, entertainment, and productivity. Shoppers planned these purchases in advance, usually to upgrade or replace existing devices.
Apparel spending rose as shoppers refreshed wardrobes and focused on reliable, gift-friendly items. Footwear became a particularly active category in the days leading up to Christmas, while accessories leaned toward practical designs suited for everyday use.
General merchandise stores saw increased spending as well. Many consumers chose retailers that allowed them to complete multiple purchases in one place, helping manage time and budgets during a compressed holiday period.
Experiences and Everyday Needs Took Priority
Beyond traditional retail, some of the biggest increases showed up in entertainment, experiences, and automotive spending. People spent more on things to do, services they use, and car maintenance or repairs that had been put off earlier in the year.
Rather than buying more stuff, many consumers chose spending that felt useful or immediately enjoyable. Being able to spread payments over time also made it easier to say yes to these kinds of purchases during a crowded holiday season.
Home-related categories did not see the same level of interest, though. Spending on furniture and home furnishings increased only slightly, while purchases tied to home improvement and garden projects fell. For many households, larger upgrades and renovations were pushed aside in favour of more immediate needs and everyday expenses.
Spending Continued, while Confidence Did Not
The increase in holiday spending didn’t translate into a sunnier outlook for Americans. According to data from The Conference Board, U.S. consumer confidence dropped again in December, extending a downturn that has now lasted five months. Consumers reported weaker views on current business conditions, the job market, and their own household income prospects, and overall sentiment landed at levels well below what economists typically associate with optimism.
Importantly, confidence fell even as people continued to make purchases. This contrast suggests many households pushed ahead with planned spending, especially on practical or experience-based purchases, while still feeling uneasy about where the economy is headed.
