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Holiday Spending Surges Despite Economic Fears
23 Dec, 2025
Summary
- Shoppers spent significantly on technology and personal items.
- In-store purchases dominated, accounting for 73% of holiday spending.
- AI is now used by half of consumers for comparison shopping.
Consumer spending remained surprisingly strong during the recent holiday shopping period, defying economic headwinds and softer consumer confidence. Data from Visa Consulting and Analytics reveals that shoppers prioritized technology and personal items, indicating resilient demand even amidst inflation concerns. This spending pattern emerged despite a less optimistic outlook compared to the previous year.
The recent seven-week period highlighted a clear preference for physical retail, with in-store purchases accounting for 73% of the total payment volume. Online sales, while smaller at 27%, proved to be a key growth driver, increasing by 7.8% year-over-year due to convenience and early promotions.
Artificial intelligence has emerged as a significant factor in the 2025 holiday shopping season, transforming how consumers research and purchase gifts. Approximately half of all surveyed consumers reported using AI tools for comparison shopping and identifying the perfect gift, marking a notable shift in retail engagement.
