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Visa, a global leader in digital payments, today announced its first Retail Spend Monitor, from Visa Consulting & Analytics (VCA), which analyses holiday season retail spend for the 7-week period starting on November 1, 2024, across the U.K.
The findings show overall holiday spend in the U.K. increased 2.3% year over year, in nominal terms.
“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,” said Alicia Ngomo Fernandez, Head of UK Consulting at Visa.
“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.”
Unwrapping the highlights:
- Online shopping increased by 6.1%:K. consumers are increasingly relying on the convenience of online shopping for the busiest season of holiday shopping.
- Ecommerce accelerates also as share of spending: Out of total retail spend in the U.K., 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.
- Department store sales increase: Large department stores saw an increase of 6.9%, driven primarily by Black Friday spend.
- Earlier shopping season: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.
- Clothing and accessories sales slow down:A decline of 2% was observed this season in sales for clothing and accessories. In other retail categories, modest growth was observed, such as an increase of 1.3% in electronics.
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. This comprehensive analysis provides valuable insights into consumer spending behaviors and trends, aiding retailers in strategic planning and market positioning.
Visa Consulting & Analytics global network of 1,500 consultants, economists, data scientists, and product designers work across 75 countries, combining payments consulting expertise with the extensive data capabilities of VisaNet. In the last year, VCA delivered more than 3,000 consulting engagements, nearly double from the year prior, that helped clients realize an estimated $5 billion in incremental revenue as a result.
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