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Table of Contents

Lead Story

Industry builders by association

News

Industry Update

NACHA proposes ACH rule changes

FTC raps processor for boarding scammers

TMR says Shark Tank exposure worth it

SpendTrend numbers bolster holiday optimism

Features

Execute your way to the top

The $800 million Braintree acquisition and PayPal's pursuit of the emerging digital marketplace

Patrick Carroll
First Annapolis Consulting Inc.

Selling Prepaid

Are GPR cards cheaper than checking

Views

Insights from an expert witness

Ken Musante
Eureka Payments LLC

New study on the Durbin Amendment claims consumers took it on the chin

Anne Leisz
Processingfinder.com

Education

Street SmartsSM:
Letting go of the inevitable no

Dale S. Laszig
Castles Technology Co. Ltd.

Your merchants need mobile-friendly websites

Michael Gavin
Merchant Warehouse

Virtual currencies and the law – a primer for ISOs

Adam Atlas
Attorney at Law

Company Profile

OnDeck Capital Inc.

Tecmark

New Products

PayAnywhere 2.0 for Android

Product: PayAnywhere 2.0 for Android
PayAnywhere

New Online Store

Product: New Online Store
Signature Card Services

Inspiration

Give yourself the gift of holiday skills

Departments

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

December 09, 2013  •  Issue 13:12:01

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SpendTrend numbers bolster holiday optimism

Despite a contrary federal government and a tepid economy, First Data Corp. is reporting good news as the holiday shopping season ramps up in the United States. Based on its SpendTrend analysis of electronic payment data, consumer spending increased by over one percentage point from September 2013 to October 2013, signaling a surge in shopping that bodes well for a profitable holiday season for retailers.

First Data reported dollar volume growth in October was 6.8 percent, up from 5.3 percent in September. The Atlanta-based acquirer said the growth was a result of cooler temperatures nationwide, which drove sales of seasonal merchandise. With fewer days in the 2013 holiday shopping season, retailers started advertising deals earlier this year that, in consequence, may have attracted foot-traffic into their stores, according to First Data.

SpendTrend, which is a monthly macro-economic report based on aggregate same-store sales activity from merchants that process via First Data, also charted a bounce-back in retail spending. Retail dollar volume growth in October rose to 5.6 percent, two percentage points higher than September's 3.6 percent growth. "Retail spending growth accelerated toward the end of the month as the government shutdown ended and shoppers regained confidence," First Data said.

"Consumer spending growth gained momentum in October, which should provide retailers with an optimistic outlook heading into the holiday season," said Krish Mantripragada, First Data's Senior Vice President, Information and Analytics Solutions. "Retailers should expect holiday spending to be modestly stronger compared to last year barring any number of external events that could negatively impact sales such as poor weather or geopolitical events at home or abroad." 

Further SpendTrend statistics supported First Data's overall optimism. All retail sub-categories showed positive year-over-year dollar volume growth, the acquirer said. Spending growth at clothing and general merchandise retailers hit 4.1 percent and 4.9 percent respectively. This time last year, those retailers experienced only 0.9 percent and 2.9 percent growth respectively. "Gas prices also continued to moderate which likely lifted discretionary purchasing power," First Data said.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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