Higher Ticket Sizes Fuel Steady Small Business Sales Growth for Fiserv in March Despite Softer Foot Traffic

Resilient Small Business Performance: Sales Rise Even as Foot Traffic Slows

Fiserv’s newly released March Small Business Index points to a durable small business sector, where total sales edged up thanks to higher average purchase values—even as transaction volumes eased. The Index itself rose to 144, with year-over-year sales up 1.3% despite a 1.3% dip in total foot traffic. Month-over-month figures also showed marginal gains: sales improved by 0.7% and foot traffic by 0.5% from February's levels.

Energy Prices Shift Spending Behavior: Gasoline Sales Surge, Restaurants Feel Pressure

Rising energy prices played a defining role in March, as Gasoline Station sales jumped 10.3% month-over-month, with most of this growth attributed to a notable 7.2% increase in average ticket size. Year-over-year, gasoline sales climbed 12.7%, closely matching the 12.9% rise in average transaction values—showing how consumers are paying more at the pump even as they pull back elsewhere.

For food service businesses, consumer caution is translating to different outcomes: limited-service restaurants saw a year-over-year sales decline of 2.9% alongside a sharp 4.2% drop in foot traffic. Full-service restaurants fared slightly better, with sales inching up 0.4% and only a marginal 0.3% decrease in traffic.

Retail Sales Gain Ground, Groceries Continue Subtle Downtrend

Retail sales posted a 1.2% month-over-month gain and 0.7% improvement year-over-year, with much of the momentum stemming from gasoline. Noteworthy contributors included Building Materials (+3.5%), Motor Vehicle Parts (+1.6%), and Furniture (+1.7%)—all benefiting from rising foot traffic. In contrast, grocery sales softened again, down 0.5% month-over-month and 1.5% year-over-year, as budget-minded shoppers became more selective.

Essentials Still Outpace Discretionaries for Twelfth Month

A key trend continues: essential spending is outstripping discretionary purchases, marking a full year of this consumer pattern. Essential categories saw a 1.9% year-over-year and 0.6% month-over-month increase, while discretionary spending grew more modestly at 0.8% for both metrics. This shift underscores how households are prioritizing necessities over non-essentials amid ongoing economic uncertainty.

Takeaway: Fiserv Data Points to Small Business Resilience Despite Changing Consumer Habits

While the landscape is evolving—with higher gas prices, shifting dining habits, and cautious spending—Fiserv’s data indicates U.S. small businesses are weathering the transition. The uptick in average ticket sizes is helping businesses offset softer foot traffic, prompting a stable start to the year. For investors and entrepreneurs, the continued dominance of essentials over discetionaries, as well as the nimbleness of small businesses in adapting to external pressures, are trends to watch moving forward.

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