You folks posted alot of good comments yesterday following the discussion on increased Credit Card usage in the mixed retail post. Enough issues were raised that I tracked down some people at Visa to get a breakdown of the specific data regarding card usage over the weekend:
Spending on Friday/Saturday with Visa branded cards was over $7.068 billion dollars; This represents a 15% increase versus 2004.
• $3.84 B was consumer credit;
• $2.82 B was debit/check cards;
• $400M was Visa Commercial/Small Business cards (a form of commercial credit).
That means approximately 54% of the increase in card usage was added consumer debt.
Another interesting data point: E-Commerce was $544 million, a 32% increase from 2004. That number is consistent with the past 5 years of growth online. Note, however, that online purchases are a mere 7.6% of total retail sales.
Also, Travel spending was up 19% to $974 million — reflecting in large part increased energy costs for airlines and autos.
Note that these are actual sales receipts, and not opinion or
expectations of spending. Its is therefore a significant data point.
UPDATE November 29, 2005 10:49am
Here is the Visa data release
There are few things that make us more annoyed than bad data, lazy thinking or poor analysis. This weekend, the National Retail Federation hit for the inept cycle with their breathless reporting of holiday sales. The NRF erroneously trumpeted that the Thanksgiving weekend sales were “blockbuster,” having “surged 22% from a year ago to about…Read More