February 2025 Small Business Trends: Retail and Restaurant Sales Surge, Fiserv Small Business Index® Reveals
Fiserv, Inc. (NYSE: FI), a global leader in payments and financial services technology, has released the Fiserv Small Business Index® for February 2025, offering key insights into consumer spending trends across small businesses in the U.S. The seasonally adjusted index remained steady at 147, unchanged from January. While total spending growth was nearly flat month-over-month, sector-level data revealed notable shifts in consumer behavior, with increased spending at retailers and restaurants offset by slower growth in service-based businesses.
According to Prasanna Dhore, Chief Data Officer at Fiserv, “Consumer spending continued to show resiliency in February, resulting in a second consecutive month of small business sales growth to start 2025. Notably, Restaurants, Furniture, Auto Parts, Clothing, and Health Care all saw growth during the month.”
Key Highlights: Small Business Performance in February 2025
On a year-over-year basis, small business sales grew by +2.1%, while total transactions increased by +4.0%, reflecting steady customer traffic. Month-over-month, sales rose slightly by +0.1%, with transactions climbing by +1.6%. However, combined sales growth for January and February 2025 stood at 3.5%, approximately 1.5 percentage points lower than the same two-month period in 2024. This slowdown is attributed to declining average ticket sizes, despite consistent transaction growth.
Retail Sector: Strong Momentum Continues
Consumer spending at small business retailers remained robust in February, with year-over-year sales growing by +1.6% and transactions increasing by +1.2%. Notably, this marked the first time since January 2023 that average ticket sizes showed a year-over-year increase (+0.4%).
The fastest-growing retail categories included:
- General Merchandise (+7.3%)
- Clothing (+3.7%)
- Sporting Goods/Miscellaneous Retailers (+3.6%)
On a monthly basis, small business retail sales grew by +0.9%, with average ticket sizes increasing by +0.8%. Industries like Motor Vehicle and Parts Dealers (+3.1%) and Furniture, Home Furnishings, and Electronics (+5.0%) experienced significant acceleration in sales. Conversely, consumers reduced their spending on essentials such as Grocery, Health and Personal Care, and Gas.
Restaurant Sector: Mixed Results Amid Challenges
Small business restaurants faced mixed results in February. Year-over-year sales declined by -2.4%, despite a +5.9% increase in foot traffic. This trend highlights ongoing consumer preferences for lower-cost dining options amid inflationary pressures.
However, February brought some relief on a month-over-month basis, with restaurant sales growing by +2.3% and transactions rising by +3.9%. Average ticket sizes, however, fell by -1.6% compared to January 2025.
Service Sector: Growth Slows
As consumers redirected more spending toward retail and dining, service-oriented businesses experienced a slowdown. Year-over-year sales growth in the services sector was just +2.3%, with a slight decline of -0.2% month-over-month.
The fastest-growing service categories annually were:
- Professional Services (+8.7%)
- Religious, Civic, and Professional Organizations (+7.0%)
- Truck Transportation (+7.0%)
Conversely, sectors like Equipment Manufacturing (-9.3%), Rental and Leasing Services (-5.9%), and Transit and Ground Passenger Transportation (-5.2%) saw significant declines.
Month-over-month, industries such as Hospitals (+1.8%), Personal and Laundry Services (+1.6%), and Ambulatory Health Care Services (+1.5%) performed well, while Information Services (-2.6%) and Administrative Services (-2.3%) lagged behind.
Regional Trends: Growth Across States and Cities
Certain states demonstrated strong year-over-year sales growth in February:
- North Dakota (+11.8%)
- Georgia (+10.6%)
- South Carolina (+8.6%)
- Minnesota (+7.0%)
- Virginia (+6.2%)
On a monthly basis, North Dakota (+8.8%), Louisiana (+5.7%), Texas (+4.3%), Indiana (+4.0%), and Alabama (+3.6%) led the pack.
Among large cities, Atlanta (+14.4%) and Miami (+5.3%) showed the most year-over-year sales growth. In contrast, the New York metro area (-5.7%) experienced a decline. Monthly gains were strongest in Dallas (+4.6%), Atlanta (+3.2%), and Philadelphia (+1.2%).
Why the Fiserv Small Business Index Matters
The Fiserv Small Business Index provides a comprehensive, data-driven snapshot of small business performance in the U.S. Unlike surveys or sentiment-based analyses, the index aggregates real-time point-of-sale transaction data from approximately 2 million small businesses, including those leveraging the Clover® point-of-sale platform. Benchmarked to 2019, it measures consumer spending and transaction activity across 16 sectors and 34 sub-sectors, offering actionable insights for businesses, policymakers, and investors.
To explore the full Fiserv Small Business Index, visit fiserv.com/FiservSmallBusinessIndex.
About Fiserv
Fiserv, Inc. (NYSE: FI), a Fortune 500 company, is a global leader in payments and financial technology solutions. Through innovative platforms like Clover, Fiserv empowers businesses to streamline operations, enhance customer experiences, and drive growth. As a member of the S&P 500® Index and recognized as one of Fortune’s Most Admired Companies™, Fiserv continues to shape the future of commerce and finance.
For more information, visit fiserv.com and follow Fiserv on social media for the latest updates.
