First Data Releases August 2013 SpendTrend®Analysis
Consumer Spending Growth Healthy In August Driven by Back-To-School Spending
ATLANTA--(BUSINESS WIRE)-- First Data Corporation, a global leader in electronic commerce and payment processing, today released its First Data SpendTrend®analysis for August 1-30, 2013 compared to August 1-30, 2012. SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards and checks at U.S. merchant locations.
August's dollar volume growth was 7.3%, a slowdown compared to July's 7.7% growth. In August, gas prices fell below year-over-year levels, which drove the slower growth. Gas Station dollar volume growth in August fell to 1.2% compared with July's growth of 6.9%. Although spending slowed slightly, the growth remained strong and was supported by robust back-to-school spending, the arrival of sales tax holidays and temperate weather.
Retail dollar volume growth of 5.5% in August jumped from July's 4.4% growth as consumers focused on back-to-school shopping. Lower year-over-year gas prices lifted, to some extent, consumers' discretionary purchasing power. Dollar volume growth at Gen'l Merch Stores and Clothing Stores saw solid improvements over July with growth at 4.0%, and 2.7%, as consumers shopped for back-to-school apparel and school supply items. Meanwhile, spending at Building Material & Supply Dealers rose to 13.1% as the housing market's momentum continued.
Overall average ticket growth was 0.8% in August compared to last month's growth of 1.1%. Gas Station average ticket growth fell to -3.5% versus July's growth of 1.0%, the slowest growth in three-months, and was the key driver of the slower growth. However, retail average ticket growth of 1.7% marked an improvement over July's 1.0% growth as retailers were less aggressive with price discounting, especially at Gen'l Merch Stores, Clothing Stores, Sporting Goods Stores and Building Material & Supply Dealers. Most retail subcategories saw higher year-over-year average ticket growth compared to July.
"Consumer spending growth continued its positive momentum into August largely due to strong back-to-school sales and the sales tax holidays," said Krish Mantripragada, SVP, Information and Analytics Solutions, First Data. "Lower year-over-year gas prices helped drive an increase in discretionary spending, which contributed to continued credit card growth over debit card."
August Dollar Volume Growth
Note: All transactions are same-store growth.
For more information on First Data SpendTrend, visit www.spendtrend.com or call SpendTrend Customer Care at 800-430-0169.
Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive customer revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction. More information about the company is available on FirstData.com as well as on Twitter, LinkedIn, Facebook and YouTube.
First Data SpendTrend, a macro-economic indicator, is based on aggregate same-store sales activity in the First Data Point of Sale Network. First Data SpendTrend does not represent First Data's financial performance.
Cara Crifasi, First Data
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