Christmas retail spending has risen 3.6% year on year, according to new analysis from Visa, with e-commerce continuing to outperform physical retail despite stores accounting for the majority of spending.

Preliminary findings from Visa Consulting & Analytics’ (VCA) annual Retail Spend Monitor show that in-store sales represented 57.4% of total holiday payment volume, rising 2.1% compared with last year.

Online spending grew faster, increasing 5.8% year on year, supported by early promotional activity and the convenience of digital shopping, said the data.

Electronics was the strongest-performing retail segment during the seven-week holiday period, with spending up 8.4%, reflecting continued demand for personal technology.

Clothing sales rose 3.0%, which Visa attributes to gradual improvements in consumers’ real disposable income over the past 18 months. Spending at department stores increased 3.9%, pointing to sustained consumer interest in home-related purchases.

Adolfo Laurenti, chief economist at Visa Europe, said “Retailers delivered seamless shopping experiences both in stores and online, and consumers responded with enthusiasm.

“This season also marked a turning point, with artificial intelligence beginning to shape how people discover products, compare prices, and interact with offers. This led to a more informed, more intentional consumer.”

The data also indicates UK consumers are broadly in line with international peers. Holiday spending growth in the UK compares with increases of 4.2% in the US, 4.4% in Canada and 5% in Australia.

Click here to sign up to Retail Gazette‘s free daily email newsletter