Restaurants, retailers see moderate credit card decline
Capital Access Network released its Small Business Credit Sales Report, a quarterly report that aims to measure credit card trends within small to mid-sized business, this week.
Among the notable declines in the third quarter of 2010 came from same store credit and signature debit card sales, which dropped 5 percent over the last year.
The restaurant sector stabilized, as credit card use dropped only 1.65 percent in year-over-year declines. The retail sector demonstrated its fourth consecutive quarter of decreasing card usage.
“This report from CAN lends support to the notion that Main Street retailers, service providers and restaurateurs seem to be attracting a disproportionately high share of the reducing consumer credit card float,” said Glenn Goldman, CAN’s chief executive officer and president.
The report suggests small restaurants experienced a growth in credit use for the first time since early 2009, while more expensive restaurants saw a decline of 0.5 percent. For the seventh consecutive quarter, retail stores saw card sales decline in seven out of eight regions. New England was the only section of the U.S. to see modest growth.
The reports of modest declines come as Americans are saving more money and attempting to reduce credit card debt.