RANCHO CUCAMONGA, Calif.– Credit and debit spending continued to rebound in the first half of June, as businesses across the country began to reopen, according to analysis by CO-OP Financial Services.
Overall, the number of debit transactions was down 5% year-over-year but the total dollar amount of those transaction increased 10%. CO-OP reported. Similarly, credit transaction volume was down 3%, but the dollar amount increased 6%.
CO-OP noted the Federal Reserve cited that increased consumer spending might signal the country is moving into the “second phase” of economic recovery.
Looking at spending within CO-OP’s own credit and debit portfolio data, the CUSO cited the following trends, comparing June 1-15, 2020, with June 1-15, 2019, data.
Online Bookstores (Amazon)
Debit: Up 26%
Credit: Up 61%
CO-OP Analysis: “Consistent throughout the pandemic has been a rise in online bookstore purchases, specifically on Amazon. Amazon continues to be a strong top-of-wallet opportunity for credit unions, particularly as the marketplace begins offering summer deals and discounts,” CO-OP said.
Grocery Stores/Supermarkets
Debit: Down 12%
Credit: Down 5%
CO-OP Analysis: “In-store grocery purchases saw a slight recovery in the first half of June but it appears consumers are still being cautious when it comes to trips to the store. This may indicate a longer-term trend towards online shopping becoming the preferred method for buying groceries,” CO-OP said.
Hardware Stores
Debit: Up 35%
Credit: Up 32%
CO-OP Analysis: “Quarantine home improvement projects appear to be a lasting trend as hardware stores sales have seen steady positive year-over-year growth over the last several weeks,” CO-OP said.
Freezer & Meat Locker Provisioners
Debit: Up 18%
Credit: Up 23%
CO-OP Analysis: “Bulk frozen foods continue to be a popular grocery item for consumers. Last month, Nielsen reported that frozen food purchases had increased 40% year-over-year in 11 weeks,” CO-OP noted.
Department Stores
Debit: Down 15%
Credit: Down 3%
CO-OP Analysis: “With almost every state relaxing stay-at-home guidelines, departments are undoubtedly hoping to recover from months of declining revenues. Unfortunately, it looks like that recovery may take longer than they had hoped. Some are speculating that the decline may be permanent; one former department store executive predicted that one-third of American malls will close over the next decade,” CO-OP said.
Discount Stores
Debit: Up 10%
Credit: Up 20%
CO-OP Analysis: “Discount stores, on the other hand, saw their tenth consecutive week of year-over-year growth in credit and debit transactions,” CO-OP said.