Fiserv Inc (FI, Financial), a leading global provider of payments and financial services technology, has released a special report on consumer spending during the 2024 holiday shopping season. The report, based on nearly 800 million transactions across U.S. business locations, highlights spending trends from November 27 to December 2, 2024. The findings indicate a robust holiday spending week, particularly benefiting small businesses, with notable increases on key shopping days such as Black Friday and Cyber Monday.
Positive Highlights
- Total retail sales increased by 5.7% compared to 2023, driven by a 6.7% rise in transactions.
- Small business retail sales grew by 11.9%, with a 9.3% increase in transactions.
- General Merchandise saw the highest growth in both spend (13.5%) and transactions (17.0%).
- Building Materials/DIY experienced substantial sales growth of 17.4% on Black Friday.
- Cyber Monday saw a significant boost for small businesses, with sales up by 13.0%.
Negative Highlights
- Average ticket sizes remained flat, with a slight decrease of 0.9%.
- Furniture, Furnishings, Electronics, and Appliances saw a decline in spend by 1.9% despite transaction growth.
- Clothing stores experienced a decrease in transactions by 2.0% despite an increase in sales.
Financial Analyst Perspective
The report from Fiserv Inc (FI, Financial) underscores a strong consumer spending environment during the 2024 holiday season, with small businesses particularly benefiting from increased foot traffic and transaction volumes. The data suggests a shift towards more frequent, smaller purchases, as evidenced by the growth in transactions despite flat average ticket sizes. This trend could indicate a cautious consumer approach, balancing spending with budget constraints. The robust performance of small businesses highlights their resilience and adaptability in capturing consumer interest during peak shopping periods.
Market Research Analyst Perspective
From a market research standpoint, Fiserv's report provides valuable insights into consumer behavior and spending patterns during the holiday season. The data reveals a resurgence in brick-and-mortar shopping, accounting for 58% of all retail sales, which may suggest a shift in consumer preferences back to in-person shopping experiences. The strong performance of categories like General Merchandise and Building Materials/DIY indicates a consumer focus on essential and home improvement products. The decline in certain categories, such as Furniture and Electronics, may reflect changing consumer priorities or economic pressures affecting discretionary spending.
Frequently Asked Questions
What was the overall growth in total retail sales during the 2024 holiday season?
Total retail sales increased by 5.7% compared to the same period in 2023.
How did small businesses perform during the holiday shopping week?
Small business retail sales grew by 11.9%, with significant gains on key shopping days like Black Friday and Cyber Monday.
Which category saw the highest growth in sales and transactions?
General Merchandise exhibited the highest growth, with sales up by 13.5% and transactions by 17.0%.
What was the trend in brick-and-mortar sales?
Brick-and-mortar purchases accounted for 58% of all retail sales, with a 4.6% increase in sales and a 3.0% rise in transactions.
Read the original press release here.
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