Story perspectives

Holiday Spending Up 4.2% Despite Tariff Impact

12/23/2025

Summary

Story summary

Consumers increased holiday spending by 4.2% from November 1 to December 21, according to Visa, slower than last year's 4.8% rise.
The National Retail Federation forecasts holiday season sales will reach between $1.01 trillion and $1.02 trillion, a 3.7% to 4.2% increase.
E-commerce sales rose 7.8%, and in-store shopping accounted for 73% of payment volume.
Tariffs affected categories like holiday decor, which rose only 0.8%, and home-improvement sales rose 1%.

History

Historical Context

The National Retail Federation (NRF), established in 1911, projected U.S. holiday sales to surpass $1 trillion in 2021, reflecting a significant consumer spending trend. However, a 4.2% increase in holiday spending was noted, down from 4.8% in 2020, amid economic pressures like tariffs affecting consumer goods. This highlights ongoing challenges for retailers adapting to changing consumer behaviors and economic conditions.

1 of 2

Story summary

Consumers increased holiday spending by 4.2% from November 1 to December 21, according to Visa, slower than last year's 4.8% rise.
The National Retail Federation forecasts holiday season sales will reach between $1.01 trillion and $1.02 trillion, a 3.7% to 4.2% increase.
E-commerce sales rose 7.8%, and in-store shopping accounted for 73% of payment volume.
Tariffs affected categories like holiday decor, which rose only 0.8%, and home-improvement sales rose 1%.

1 / 2