Canada’s holiday spending increases: Visa 2025 Retail Spend Monitor

A new report shows holiday spending has increased in Canada.

Visa Canada released its annual Retail Spend Monitor, offering a look at Canada’s holiday retail from Visa Consulting and Analytics (VCA).

Early data show holiday spending increased 4.4 per cent year-over-year across all payment types, including cash or cheque.

In-store still accounts for most payment volume according to the data. Physical stores accepted for 88 per cent of payments versus 12 per cent for online purchases but online spending increased seven per cent year-over-year driven by promotions and convenience, said the release.

The data also showed strong consumer purchasing power and spending momentum outside Canada. There were notable increases in the U.S. (4.2 per cent), U.K. (3.6 per cent) and Australia (five per cent).

Clothing and accessories saw a spending bump of 10 per cent, versus 5.3 per cent last year, making it the fastest growing retail category in Canada.

More consumers sought the convenience of one-stop shops, which saw a nine per cent increase in spending versus a two per cent increase last year.

Retailers in health and personal care saw a 5.4 per cent increase versus 3.5 per cent last year.

VCA monitors retail sales over a seven-week period beginning Nov. 1.