First Data SpendTrend Reports Highlight Impact of Hurricanes Harvey & Irma on Retail Spending
22 September 2017 - 10:00PM
Business Wire
First Data found that both hurricanes had
similar impacts on consumer trends
In the aftermath of the hurricanes that have wreaked havoc
through the United States, millions of people have begun the
arduous rebuilding process. While the recovery continues in
earnest, the economic impact to the region is also coming into
focus. Today First Data (NYSE: FDC), a global leader in
commerce-enabling technology, released two reports analyzing the
magnitude of the impact that Hurricane Harvey and Hurricane Irma
had on consumer spending.
For Hurricane Harvey, First Data found that retail spending
plummeted 58.7% week-over-week (43.7% year-over-year) in Houston
and its surrounding areas at the peak of the hurricane. Across the
state of Florida, spending dropped 55.7% week-over-week (or 39.1%
year-over-year) at the apex of Hurricane Irma.
“With First Data’s unparalleled data sets, we are able to
provide unique insight to help businesses and government agencies
understand the ultimate impact of these natural disasters,” said
Rishi Chhabra, Vice President, Information & Analytics, First
Data. “Our data shows that consumer spending in both impacted
regions followed a similar trajectory. Spending increased the week
before the hurricanes, with people stocking up on key items like
gasoline and groceries, and dropped significantly during the storm.
After the worst of the hurricanes, consumer spending rebounded as
people began to rebuild.”
Like Brick-and-Mortar, eCommerce Retail Sales Took a
Hit
Unsurprisingly, brick-and-mortar stores saw a significant drop
in sales. The same was true for eCommerce. In Houston during the
week of Hurricane Harvey, eCommerce spending dropped an incredible
41.4%. By comparison, total U.S. eCommerce business was down only
4.3% during the same week. Post-storm, Houston eCommerce sales
continued to drag while national eCommerce sales rebounded.
The same was true for Hurricane Irma. In Miami, eCommerce
activity started dropping the week before Irma, declining
significantly by 39.3% during the week of the hurricane (U.S.
eCommerce spending was up 3.9%). After the hurricane, Miami
eCommerce sales increased 0.6%, dragging behind national eCommerce
spending which was up 12.9%.
Data Revealed Path of Evacuees from Impacted Areas
Across Houston, there was an uptick of hotel sales starting
August 31 as consumers rushed to book hotel rooms. Average ticket
sizes for hotels were as high as $367 and on average about $50 more
than they were pre-storm. Smaller towns like McAllen, Killeen,
Waco, and Laredo saw significant increases in hotel spending during
the hurricane, indicating that people sought refuge in these towns
during the storm.
Spending on hotels in Florida followed a similar pattern.
Tallahassee, in particular, saw a significant increase of 289.7% in
people spending money on hotels. The data also showed that Orlando
was a popular destination for Miami evacuees. In the week leading
up to Hurricane Irma, Orlando saw a 6.4% spending increase in
Miami-based credit and debit cards. Cardholders from Tampa were
more dispersed across Florida, with the number one destination
being Tallahassee.
During the Hurricanes, Gasoline Sales Dropped While Prices
Rose
During Hurricane Harvey, gasoline sales, which had increased
13.4% the week before, dropped 15.4% during the hurricane. Gasoline
stations in Florida also saw a decline of 28% in spending during
the week of Hurricane Irma.
When it came to prices, however, both impacted areas saw prices
climb during the hurricanes. In Houston, the price per gallon of
gas shot up $0.25-$0.50 during the week of Hurricane Harvey. In
Florida, average ticket prices at gasoline stations soared an
average of 16.4%, with Port St. Lucie seeing the biggest increase
of 24.8%.
Methodology
To develop these reports, First Data analyzed brick-and-mortar
and eCommerce transaction data from more than 100,000 impacted
businesses. First Data's SpendTrend report is based on real,
same-store spending data across tens of thousands of merchants in
the impacted areas.
To view the reports, please visit the following links: Hurricane
Harvey and Hurricane Irma.
Relief Efforts
In addition to analyzing consumer spending data, First Data also
announced a program that provides free Clover Go® mobile credit and
debit card readers to eligible business owners impacted by
Hurricane Harvey and Hurricane Irma. First Data is also providing
free device installation and discounted pricing for these
businesses as they re-open their doors in the aftermath of the
storms.
Business owners who are interested in the offer can call First
Data’s toll-free customer service hotline at 1-855-401-8152, or by
visiting these two websites:
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling
technology, serving approximately six million business locations
and 4,000 financial institutions in more than 100 countries around
the world. The company’s 24,000 owner-associates are dedicated to
helping companies, from start-ups to the world’s largest
corporations, conduct commerce every day by securing and processing
more than 2,800 transactions per second and $2.2 trillion per
year.
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Liidia LiuksilaFirst
Data212-515-0174Liidia.Liuksila@FirstData.com
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