Retailers Enjoyed Strongest Holiday Season in Four Years, According to First Data’s SpendTrend® Report
January 10 2018 - 09:00AM
Business Wire
Overall sales growth for the full holiday
season was 6.2% year-over-year, accelerating from last year’s
4.7%
Retail spending grew 5.4% compared to 3.6% last
year
eCommerce represented 29% of total
transactions, up from 26% in 2016
Given the favorable consumer backdrop, spending grew by 6.2%
this holiday season (October 28-January 1), the highest in four
years, according to First Data (NYSE: FDC). The company, a global
leader in commerce-enabling technology, analyzed consumer spending
at more than 1.3 million merchant locations in the U.S. Throughout
the holiday season, retail spending was up 5.4%, a solid increase
from last year’s growth rate of 3.6%. For online sales, eCommerce
accounted for 29% of all transactions, up from 26% in 2016.
Additionally, this holiday season marked the highest share of spend
for eCommerce transactions to date.
“A variety of factors created a ‘perfect storm’ for consumer
spending this season, from low unemployment and high consumer
confidence, to the soaring stock market and even good weather
conditions for most of the U.S.,” said Glenn Fodor, Senior Vice
President, Head of Information and Analytics Solutions at First
Data. “Consumers were out in full force during the entire season,
leading to impressive growth rates. Additionally, while eCommerce
continues to grow rapidly, brick-and-mortar still remains a vital
part of the holiday season.”
Electronics & Appliances Stand Out
While the majority of retail categories experienced solid growth
this season, electronics and appliances, and building materials
helped drive the overall seasonal growth, seeing the highest growth
rates at 8.3% and 6.9%, respectively. The only category with a
slight decline was the sporting goods, hobby and books segment,
with a modest 0.6% decline.
Consumers Buying More Online but for Smaller Ticket
Items
The average ticket size for retail brick-and-mortar was $68.57,
compared to $103.49 for eCommerce. The dip in the average eCommerce
ticket size, which was $105.73 in 2016, along with nearly 13%
growth in transaction volume suggests that more people are using
online channels to purchase less expensive, everyday items than in
prior years.
Southwest Flourishes as Houston Rebounds
Among the 10 largest U.S. cities, Houston ranked number one in
terms of overall growth, with a 10.9% increase in spend. Following
the devastating hurricane season, spending patterns indicate that
people in the area are rebuilding. Building materials sales growth
was up 31% and furniture sales jumped 22%.
While every single region experienced growth in retail spending
this holiday season, the Southwest and New England regions grew the
fastest, at 5.7% and 5.5%, respectively. At the other end of the
scale was the Mid-Atlantic region, which posted growth of 0.7%.
For more information on the First Data Holiday 2017 SpendTrend
report, including average ticket size, spending across various
retail categories, and a deeper regional analysis, please visit
this website. The link also features industry-specific infographics
from the SpendTrend Holiday Countdown.
Methodology
All data referenced in the report is First Data’s aggregated
merchant processing data and includes only card-based forms of
payment. The analysis includes more than 1.3 million U.S. merchant
locations that were open for business between October 28, 2017 and
January 1, 2018, and have been serviced by First Data for at least
13 months. These locations include everything from “mom-and-pop”
type shops to large retailers, and the report covers both
brick-and-mortar and eCommerce transactions.
First Data’s SpendTrend report, a macro-economic indicator, is
based on aggregate same-store sales activity across First Data’s
network. Same-store sales methodology focuses on consumer spending
activity and economic growth. First Data’s SpendTrend report does
not indicate nor represent First Data’s financial performance.
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling
technology, serving approximately six million business locations
and 4,000 financial institutions in more than 100 countries around
the world. The company’s 24,000 owner-associates are dedicated to
helping companies, from start-ups to the world’s largest
corporations, conduct commerce every day by securing and processing
more than 2,800 transactions per second and $2.2 trillion per
year.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180110005285/en/
Liidia LiuksilaFirst
Data212-515-0174Liidia.Liuksila@FirstData.com
First Data (NYSE:FDC)
Historical Stock Chart
From Feb 2024 to Mar 2024
First Data (NYSE:FDC)
Historical Stock Chart
From Mar 2023 to Mar 2024