Moneris' Quarterly Spending Report shows Q2 consumer spending decreased
by 0.32 per cent
TORONTO, July 16, 2014 /CNW/ - Canadian consumer spending remained flat
for the second consecutive quarter of 2014, according to the Quarterly
Spending Report released by Moneris Solutions Corporation ("Moneris"),
Canada's largest credit and debit card processor. This is the first
time Moneris has reported two consecutive flat quarters since issuing
the reports in 2010.
Moneris' Quarterly Spending Report revealed that, compared to the same
period last year, Q2 consumer spending decreased by 0.32 per cent. June
showed the most growth, with a modest 0.17 per cent increase, while
April and May experienced declines of 0.21 per cent and 0.89 per cent,
"Although slight, this overall drop is disappointing," said Angela
Brown, President and CEO of Moneris. "After a flat first quarter, which
we attributed to this year's harsh winter, we were hoping consumer
spending would rebound in Q2. We believe the slow start to spring has
to do with the continuation of trends seen in Q1."
Specialty retail experienced a slight 0.75 per cent increase, while
apparel decreased by 0.90 per cent. Other retail categories that showed
a decline included women's accessories (-5.03 per cent), florists
(-4.73 per cent) and groceries (-4.35 per cent), while spending in home
renovation stores increased by 8.42 per cent. Similar to Q1, utilities
spending remained high, with an 18.69 per cent increase. The report
also showed that spending on travel and transportation was favoured by
Canadians, with an increase of 5.39 per cent.
Canadian sports fans reach for their wallets
Canadians' love for sports and playoffs may have contributed to the
increase in sports apparel purchases, which grew 3.50 per cent, and
increase in spending at drinking establishments, which climbed 3.04 per
cent. Fast food establishments also saw a 3.49 per cent boost, while
dine-in restaurants did not fare as well, with a decrease of 2.90 per
"Catching a game at a bar with friends has become a favourite way for
Canadian sports fans to show support for their teams," said Brown. "We
saw a similar uptick in bar sales during the Winter Games in Russia,
and with so many Canadian teams playing well this spring, the impact of
sport on spending continues to be evident."
Credit takes a backseat to debit transactions
Moneris' Quarterly Spending Report showed that Canadians preferred
paying with their debit cards, even though both credit and debit
spending decreased by 0.22 per cent and 0.39 per cent, respectively, in
Spending gains in Prince Edward Island, British Columbia and Alberta
Consumer spending was highest in Prince Edward Island, British Columbia
and Alberta, with increases of 2.11 per cent, 1.08 per cent and 0.72
per cent, respectively. Ontario consumer spending was close to flat,
with a 0.03 per cent decrease.
Saskatchewan, which led spending growth in Q1, was among the three
lowest-spending provinces in Q2 (-2.05 per cent), equal to Manitoba,
while Quebec experienced the smallest gains in Q2 (-2.21 per cent
Canadian restaurants score big during FIFA World Cup 2014
While overall restaurant spending decreased in the second quarter, the
restaurant category experienced big wins during the last two weeks of
June. Data comparing spending during the two-hour period of World Cup
games played between June 12 and June 29, to spending during the same
time and day of the week prior to World Cup, showed a 12.4 per cent
increase in restaurant spending across Canada.
Of all Canadian provinces, the Maritimes experienced the highest
spending growth in the restaurant category between June 12 and June 29.
Data comparison found a cumulative spending increase of 28.09 per cent
in Newfoundland, followed closely by Nova Scotia, with a 20.92 per cent
increase, during the last two weeks of June.
About The Moneris Spending Report
The Moneris Spending Report provides a snapshot of consumer spending
activity in Canada by analyzing credit and debit card transaction data.
As the market leader with the largest merchant base, Moneris presents
detailed analysis and insight on a quarterly basis. The percentages
cited are derived from actual sales volumes - the dollar values of
credit and debit card transactions being processed by Moneris
About Moneris Solutions
As one of North America's largest providers of payment processing
solutions, Moneris Solutions Corporation ("Moneris") offers credit,
debit, wireless and online payment services for merchants in virtually
every industry segment and processes more than three billion
transactions, annually. Moneris also offers electronic loyalty and
stored-value gift card programs. With more than 350,000 merchant
locations, Moneris provides the hardware, software and systems needed
to improve business efficiency and manage payments. For more
information please visit www.moneris.com.
PDF available at: http://stream1.newswire.ca/media/2014/07/16/20140716_C7886_DOC_EN_42137.pdf
SOURCE: Moneris Solutions Corporation
For further information:
416-640-5525, ext. 245