Fiserv’s Update on Small Business Sales: What It Means for Owners

Small Business Resilience: A Glimmer of Hope

In a landscape marked by rifts and uncertainties, recent data from the Fiserv Small Business Index unveils a slight, yet significant, uptick in small business sales for April 2025. The Index, which benchmarks the current performance against pre-pandemic levels, reflects a modest 0.4% rise month-over-month, culminating in a total of 151 points—which translates to a 3.2% year-over-year increase. This glimmer of hope showcases the swift adaptability of small businesses in an ever-changing market environment.

Consumer Behavior: Essentials Over Luxuries

Notably, this increase in sales aligns with shifting consumer habits, evidenced by a growing preference for essential goods and services. According to Prasanna Dhore, Chief Data Officer at Fiserv, consumers appear to be prioritizing their spending on essentials such as healthcare and groceries while gradually pulling back on discretionary expenses, like travel and upscale retail. The result? Businesses catering to basic needs are witnessing stronger growth.

Service Sector Continues to Shine

Reflecting a continued trend throughout 2025, services outperformed goods, marking a year-over-year increase in service sales at 3.6%, compared to a mere 2.2% for goods. Categories such as Professional Services and Ambulatory Health Care demonstrated notable year-on-year growth, suggesting that consumers are still willing to invest in services that directly improve quality of life. This trend amplifies the importance of adaptability for small business owners wishing to thrive amidst market fluctuations.

Restaurant and Retail Performance: A Mixed Bag

On the food front, despite a year-over-year rise of 1.8% in small business restaurant sales, a slight monthly dip indicates consumer caution, as average ticket sizes have seen a dramatic decline. Similarly, the retail sector showed varied results, with grocery stores leading retail growth at a vibrant 7.0% year-over-year while other categories, such as gasoline stations, faced declines. This mixed performance emphasizes the need for small business owners to stay attuned to consumer preferences.

Looking Ahead: What This Means for Small Businesses

The findings presented in the Fiserv Small Business Index serve as a beacon for small business owners navigating the complexities of today’s economy. By focusing on essentials and adapting to changing consumer preferences, businesses can harness strategies for sustained growth. Investing in the right areas will be crucial for capitalizing on emerging opportunities and mitigating risks in the coming months.

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