Wednesday, July 17, 2013
According to First Data Corp.'s SpendTrend analysis, which tracks POS transaction data at approximately 4 million merchant locations nationwide, same-store dollar volume in June was up 7.1 percent year-over-year, indicating consumers spent more last month than they did in June 2012.
For the sixth consecutive month, credit dollar volume continued to outpace debit, First Data reported. June credit dollar volume grew 8.8 percent, compared to 6.9 percent for signature debit and 4.4 percent for PIN debit. Prepaid payments fared well, increasing 12.7 percent, while check payments continued to decline, dipping 6.6 percent for the month.
"In terms of larger ticket items, average ticket growth in June jumped compared to May, indicating promotional activity continued to ease and shoppers showed an increased propensity to purchase bigger-ticket items," said Krish Mantripragada, Senior Vice President, Information and Analytics Solutions at First Data. The retail average ticket rose 2.7 percent in June, versus 2.4 percent in May, he noted.
Based on the current SpendTrend analysis, the building material and garden equipment segment reaped the single largest monthly gain, as dollar volume grew 13.4 percent year-over-year in that segment. Mantripragada attributed that gain to consumers increasing their credit card spending on higher priced items at home improvement retailers.
Mantripragada noted that much of the growth in that segment is a result of the rebound in the housing market, as well as consumers engaging in seasonal home improvement projects, which were delayed this year following a prolonged winter and colder than normal spring for most of the nation.
Also posting healthy monthly gains were nonstore retailers, which include online, mail order, vending, direct selling and fuel dealer merchants. The National Retail Federation reported an 11.5 percent unadjusted year-over-year growth rate in this sector in June. With the exception of electronics and appliance stores, where sales declined 2.3 percent, all other sectors reported modest gains for the period, the NRF said.
According to the NRF, consumers remain wary despite these positive economic signs. Unemployment, higher taxes and uncertainty about fiscal policy exerted downward pressure on consumer spending early in 2013, the NRF said. However, consumer resiliency seems to be another trend that has emerged in recent months.
"Consumers shouldered a plethora of budgetary concerns in early 2013 and have managed to increase [year-over-year] spending growth," First Data's Matripragada said. "Encouragingly, consumer spending has held up relatively well thus far in 2013, showing few ill effects of the tax hikes. With the Dow setting new record highs, and home prices marching steadily higher, it has given a boost of confidence to consumers."
For more information on First Data's SpendTrend, visit www.spendtrend.com . Retail research and reports from the NRF can be viewed at www.nrf.com . 
Editor's Note:
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.
