Black Friday Sales Power Modest Growth as Essentials Outpace Discretionary Spending, Fiserv Data Shows
Fiserv Small Business Index Stays Elevated Despite Slowdown—Black Friday Offers Key Boost
November wasn’t a breakthrough month for U.S. small businesses, but strong Black Friday sales gave a notable lift, according to the latest Fiserv Small Business Index. The seasonally adjusted index clocked in at 142—down a single point from the prior month. While year-over-year sales ticked up a modest 0.8%, overall transactions fell 0.7% compared to 2024. The big exception: Black Friday’s surge in consumer activity helped many small businesses outperform the flat backdrop.
Holiday Weekend Propels Sales, But Momentum Fades Fast
Digging deeper, the Thanksgiving weekend played an outsized role in shaping November’s retail story. Core Retail sales (excluding volatile categories like Gasoline) rose 3.9% on Thanksgiving Day, with total Retail up 1.9%. Black Friday kept the momentum going, with Core Retail growing 3.1% and restaurants up 2.9%. Yet, by Saturday, momentum had cooled—sales dipped 2.1%, suggesting the seasonal bump was concentrated in just a couple of key shopping days.
| Day/Event | Core Retail YoY Change | Total Retail YoY Change | Restaurants YoY Change |
|---|---|---|---|
| Thanksgiving Day | +3.9% | +1.9% | N/A |
| Black Friday | +3.1% | N/A | +2.9% |
| Saturday | N/A | -2.1% | N/A |
Retail Shows Selective Strength: Only Some Categories Grow
Retail overall had a tougher November, with sales down 1.1% year over year—despite foot traffic inching up 1.1%. The main drag was a 2.3% drop in average ticket size. Compared to October, sales also slipped 1.4% amid slightly lower traffic and ticket sizes. Not all was bleak: General Merchandise and Sporting Goods saw year-over-year sales gains of 2.3% and 3.3%, respectively—showing pockets of resilience amid broader caution.
Restaurants Hold Steady—Limited-Service Outperforms Full-Service
Restaurants mirrored the slow pace elsewhere. November’s sales for small business eateries were nearly flat at -0.1% compared to both last year and October. Foot traffic slid 1.7% year-over-year, but the average ticket grew 1.6%. Notably, Limited-Service restaurants eked out 0.4% annual growth, while Full-Service slipped 0.7%—reflecting consumers’ tilt toward value as wallets tighten.
| Restaurant Category | YoY Sales Change | YoY Foot Traffic Change | YoY Average Ticket Change |
|---|---|---|---|
| Limited-Service | +0.4% | N/A | N/A |
| Full-Service | -0.7% | N/A | N/A |
| All Restaurants | -0.1% | -1.7% | +1.6% |
Essentials Drive Growth, Discretionary Spending Lags
The shift in consumer focus was unmistakable. Discretionary categories recorded a small dip (-0.1%), while spending on Essentials climbed a more solid 2.1%. Meanwhile, total Goods sales declined 0.5% as Services rose 1.4%, highlighting the strength of everyday necessities during a month known for big-ticket splurges.
| Category | YoY Sales Change |
|---|---|
| Essentials | +2.1% |
| Discretionary | -0.1% |
| Total Goods | -0.5% |
| Services | +1.4% |
Key Takeaway: Black Friday Still Matters, but Value-Driven Choices Dominate
The data is clear—while headline events like Black Friday are crucial to small business fortunes, most shoppers are opting for essentials over big splurges, and for lower-cost dining experiences when eating out. Investors and business owners should keep an eye on how value-oriented behaviors evolve as the holiday season continues and macroeconomic uncertainty lingers. Will these pragmatic patterns persist into December, or will late-season sales turn the tide?
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