In a recent blog post, “Report: Consumer Spending at Quick Serves Grew in April,” QSRMagazine.com points to analysis by First Data Corporation which compared year-over-year sales data for April, 2014.
FDC’s SpendTrend report tracks same-store POS data by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards, and checks from nearly four million merchant locations serviced by First Data.
Given the strong presence Sintel Systems has in the retail, restaurant and service industries’ point of sale (POS) marketplace, we share these service sector growth trends with our customers and franchise hopefuls looking for key insights and opportunities in order to help them make the best decisions from the very beginning.
The SpendTrend report is encouraging. Here are some of the highlights from the QSRMagazine.com post:
• Overall, spending growth in April was 4.1 percent, showing momentum driven by warmer weather as well as the “Easter shift” into April this year, which appears to have supported shopper foot traffic. QSRMagazine.com writes, “Spending growth at clothing and accessories stores and health and personal care stores of 1.2 percent and 0.2 percent spiked versus last month’s growth of -5.0 percent and -2.4 percent as shoppers visited these merchants for candy, Easter-themed toys and spring apparel.”
• Transaction growth for April was higher as well, 3.5 percent over 2.7 percent in March. Other factors cited were “higher gas prices, an uptick in job creation and a lift in consumer confidence also supported the growth.”
• Gas station spending growth in April was 3.3 percent, the highest monthly growth rate since July, 2013.
• Retail spending growth rose 1.3 percent, compared to -0.5 percent in March. For transactional growth, the retail figures were 2.4 percent in April versus -1.2 percent in March.
• Gains in spending weren’t across the board, however. Dollar volume growth in April was 3.6 percent at building material and supply stores, slightly below last month’s growth of 4.3 percent. The figures were interpreted as healthy, stemming from the higher temperatures which encouraged spending on garden, home construction and outdoor items.
• Average ticket growth in April was 0.5 percent, up over March’s 0.3 percent growth rate, and the strongest growth in a year driven by an increase in food and gas costs. Average gas station ticket growth in April was the highest growth in nine months; 0.4 percent versus -4.1 percent last month.
• Average ticket growth for food and beverage stores was 1.8 percent, the highest growth in over a year.
• Debit spending growth continued to rise, First Data says, due in large part to higher tax refund values and volumes through April. “Overall spending growth was strong and gained momentum over March as the Easter shift into April and the return of warmer weather encouraged consumers to get out and shop,” says Krish Mantripragada, SVP of information and analytics solutions for First Data, quoted in the post. “Consumer confidence and job creation also bounced back, which put consumers in the mood to release their pent-up demand from the extended winter. “
Read the full QSRMagazine.com post here.
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