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PURCHASE, N.Y., and SAN FRANCISCO – A U.S. retail report by MasterCard and Wells Fargo found that consumer spending with small retailers increased eight percent in June compared to the same period in 2011. This was higher than the overall U.S. retail growth rate of 6.9%. Sales growth with small retailers has now outperformed growth of overall retail sales for nine consecutive months, since October 2011.
The food services share of total retail sales increased by one percent in June over the same time last year. That's considerably down from the same time last year, which saw food services growing by eight to nine percent in 2011.
Michael McNamara, Global Solutions Leader of MasterCard SpendingPulse declared: "Although we've seen smaller retailers grow at a higher clip than overall retail over the past 9 months, this follows a period from November 2009-October 2011 when larger retailers had bounced back from the recession more robustly than their smaller counterparts."
Each MasterCard SpendingPulse for Small Business report includes information about current retail sales (excluding autos and gasoline), year-over-year growth in total retail sales (excluding automotive sales), as well as views with and without food services. MasterCard says that the report is a new view that gauges the health of sales within small retailer segment of the economy, which are retailers with less than $35 million in annual sales and less than 200 employees. Most have less than $10 million in annual sales.
McNamera states, "Small retailers account for approximately a third of total retail sales in the U.S., so a detailed understanding of this sector is crucial to understanding the economy as a whole."