‘Main Street’ Businesses Experienced Black Friday Card Sales Gains

Capital Access Network Releases Small Business Credit Sales Report Special Issue

NEW YORK--()--Capital Access Network Inc. (CAN), a next-generation small business finance provider, today released figures showing a 3.9 percent increase in same store credit and debit card sales at “Main Street” merchandise retailers and restaurants this Black Friday period* compared to 2011 Black Friday sales. The findings were released in the “Black Friday on Main Street” special issue of CAN’s Small Business Credit Sales (SBCS) Report, available at http://www.capitalaccessnetwork.com/data-services/sbcs-report.

Black Friday results have been mixed. ShopperTrak’s National Retail Sales Estimate reported that Black Friday 2012 ‘Big Box’ retailers’ sales decreased 1.8 percent over 2011 levels. However, according to a National Retail Federation survey conducted by BIGinsight, traffic and spending over the entire weekend exceeded last year’s results as a record 247 million shoppers visited stores and websites over the Black Friday weekend, a 12.8 percent increase, and the average shopper spent 6.8 percent more than in 2011.

While overall small merchants and restaurants alike managed to show positive trends this year, small Merchandise Retailers, which tend to be businesses that traditionally depend on strong pre-holiday sales including jewelers, boutiques, toy stores, clothing stores, electronic retailers, sporting goods stores and gift shops, experienced a decline in card sales. Unlike others, this segment decreased sales 8.8 percent compared to the same period’s 2011 sales.

“Despite a decrease in card volume for some segments, most Main Street businesses should be encouraged by the overall increase in store sales seen during the 2012 Black Friday shopping weekend,” said Glenn Goldman, CEO of CAN. “It’s clear that many small and mid-sized businesses kicked off the holiday shopping season in the right direction and that consumers were more committed to supporting small businesses this season.”

REPORT HIGHLIGHTS:

1. The 2012 Black Friday* holiday shopping period overall was positive for small businesses. Credit and debit card sales in total increased 3.9 percent compared to the 2011 Black Friday period. However, results were not as favorable as the 5.8 percent YoY increase that occurred in 2011 versus 2010.

2. In comparison to 2011 YoY results, small Merchandise Retailers’ (businesses traditionally dependent on strong pre-holiday sales, like jewelers, boutiques, toy stores, clothing stores, electronic retailers, sporting goods stores, gift shops, etc.) card sales declined. This segment decreased sales 8.8 percent compared to the same period’s 2011 sales.

3. Restaurant card sales increased 3.9 percent during this Black Friday period, though at a lesser amount than the 2011 Black Friday period.

Spotlight: In keeping with trends throughout the year, restaurants with smaller check sizes (average of $25 or less) enjoyed larger YoY card sales growth during the 2012 Black Friday period than restaurants with a larger average check size (average of $25+), with YoY growth of 5.2 percent versus 3.6 percent respectively.

* Black Friday period defined as the Friday through Sunday after Thanksgiving, November 23-25.

About the CAN Small Business Credit Sales Report

The Small Business Credit Sales (SBCS) Report is a quarterly report highlighting credit and signature debit card sales trends within small to mid-sized businesses (SMBs) nationwide. Sponsored by the Data Services Division of Capital Access Network, Inc. (CAN), a New York-based financial technology company, the SBCS Report features analysis of credit and debit card sales trends based on same store card sales data housed in CAN’s data warehouses, which retain 14 years of restaurant, retail and service industry data from more than 60,000 businesses and the “daily” card sales data collected from more than 95,000 working capital transactions that have been supported by CAN’s proprietary Daily Remittance Platform. Most same store sales retail reports focus on or include data from big-box retail and nationwide/regional department stores, either ignoring or obscuring the trends of the majority of SMBs.

About Capital Access Network, Inc.

Since 1998, Capital Access Network, Inc. (CAN) has provided small businesses access to over $2.5B in working capital through its subsidiaries, NewLogic Business Loans, Inc. and AdvanceMe, Inc. CAN’s award winning technology platform automatically evaluates a multitude of business performance variables by integrating big data from firmographic, banking, and credit card processing sources with proprietary risk models built from over 100,000 transactions over multiple business cycles in approximately 750 SIC codes. This enables CAN to have unparalleled insight into the strength of the business and provide access to capital based on business performance rather than personal credit scores of the business owners. CAN also supports small business finance providers desiring more finance options for their own customers in the U.S. and internationally. All business loans obtained through NewLogic Business Loans are made by WebBank, a Utah-chartered Industrial Bank, Member FDIC.

Contacts

Trevelino/Keller
Carrie Crabill, 404-214-0722 ext. 102
ccrabill@trevelinokeller.com

Release Summary

Capital Access Network Inc. released figures showing a 3.9 percent increase in same store credit and debit card sales at “Main Street” merchandise retailers and restaurants this Black Friday period*.

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Contacts

Trevelino/Keller
Carrie Crabill, 404-214-0722 ext. 102
ccrabill@trevelinokeller.com