Fiserv, Inc.’s Fiserv Small Business Index indicates small businesses closed out the holiday season with modest gains.
“December’s sales gains show the resilience of small businesses during a competitive holiday season,” says Prasanna Dhore, chief data officer at Fiserv. “Consumers focused on essentials and made selective discretionary purchases, driven by ongoing cost pressures. These patterns, resulting in modest monthly sales growth, highlight how small businesses continue to adjust in a challenging economic climate.”
Key takeaways:
· The seasonally adjusted Index climbed to 144, while year-over-year sales grew (+1.6%), due to higher average ticket sizes and steady demand for essentials.
· December sales rose month-over-month (+0.8%), while transaction volume remained flat. Compared to 2024, average ticket sizes were up (+2.0%), signaling that consumers spent more per purchase during the holiday period.
· Retail sales among small businesses rose (+0.9%) month-over-month and (+0.3%) year-over-year, with core retail (excluding volatile categories) posting stronger (+1.1%) year-over-year growth.
· Essential categories continued to outperform discretionary purchases, growing (+2.8%) year-over-year compared to (+0.7%) for discretionary items. Grocery sales dipped slightly (-0.3%) despite a small uptick in foot traffic (+0.2%).
· Small business restaurants saw minimal change, with sales up (+0.1%) year-over-year and flat month-over-month. Falling year-over-year foot traffic (-1.5%) was the key driver of the low annual growth. Limited-service restaurants (+0.5%) outperformed full-service restaurants (-0.6%) year-over-year, while bars saw +1.0% growth, driven entirely by increased foot traffic.
· Compared to November, sales grew in 43 of 50 states in December, a significant increase from the month prior, when only 11 states saw sales increases.
