Small business sales post modest growth in July

Sales at small businesses posted modest growth in July, as higher average tickets offset softer foot traffic and selective consumer spending, Fiserv reported. The Fiserv Small Business Index revealed that sales at small businesses increased 1.6 percent year-over-year in July, marking the second-strongest annual growth rate of 2026, as consumers spent more per visit while remaining selective in discretionary purchases.

The seasonally adjusted Fiserv Small Business Index remained at 145 in July. Growth was driven by higher average tickets, which rose 3.2 percent year over year. Foot traffic fell 1.6 percent year over year, marking the ninth consecutive month of declines, while holding essentially flat month over month at +0.1 percent.

"July's results reinforce a consistent theme in 2026: small businesses are still growing, but growth is increasingly dependent on higher tickets rather than stronger traffic," said Prasanna Dhore, chief data officer at Fiserv. "Consumes remain engaged, particularly in select retail categories, but continued pressure in restaurants and the shift toward value-oriented spending show households are being more selective with where and how they spend."

The Fiserv Small Business Index is derived from POS transaction data, including card, cash and check transactions, in-store and online, across approximately 2 million U.S. small businesses. It includes data from hundreds of thousands of small businesses using Fiserv's Clover POS business management platform, the company noted in a press release. The index is published the first week of every month.

Restaurants under pressure

Food services and drinking establishments saw sales slip 0.8 percent year over year and 0.4 percent month over month, as average tickets rose 2.8 percent year over year but transactions fell by 3.6 percent.

Sales at limited-service restaurants continued to lag, with sales down 3.4 percent year over year, on a large drop in transactions (5.3 percent). Full-service restaurants saw sales hold comparatively steady, edging up 0.6 percent year over year.

Gasoline eased; grocery sales steadied

Sales at gas stations were elevated (up 14.2 percent year over year), but declined 0.5 percent month over month as average tickets remained elevated (up 15.4 percent year over year). Meanwhile, grocery spending appeared to be focused on value with sales rising 0.6 percent year over year on higher transaction values (up 1.3 percent), even as average tickets fell 0.7 percent.

Retail kept its footing

Total retail sales increased 1.9 percent year over year, supported by transaction growth of 2.2 percent year over year, even as average tickets declined 0.3 percent, Fiserv said.

Consumers leaned into value and lifestyle categories, with sporting goods and hobby retails seeing 5.6 percent growth in sales. Clothing and accessories and health and personal care retailers all performed well, with sales rising 2.1 percent and 3.6 percent, respectively. This suggests households remained willing to spend selectively, Fiserv said.

Tug of war between wants and needs

Sales of essentials grew 2 percent year over year, outpacing sales of discretionary items (up 1.3 percent), though both categories experienced declines in number of transactions.

"The clearer story was goods versus services," Fiserv stated. Sales of goods rose 2 percent year over year, driven entirely by activity. Transactions increased 2 percent and average tickets were flat compared to 2025. Services grew 1.4 percent year over year, with average tickets up 4.4 percent even as the number of transactions fell 2.9 percent.

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