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Last updated on April 20, 2014 at 21:20 EDT

Canadian consumer spending up 3.31 per cent in Q1

April 11, 2013

Despite continued growth, Moneris Solutions reports that spending
volumes are down

TORONTO, April 11, 2013 /CNW/ – Moneris Solutions Corporation
(“Moneris”), Canada’s largest credit and debit card processor,
announced today that Canadian spending increased by 3.31 per cent
during the first quarter of 2013 compared to the same period last year.
Despite this, spending volumes dropped steadily throughout the quarter,
with January showing a spending increase of 4.38 per cent, while
February and March showed increases of 3.35 per cent and 2.17 per cent,
respectively.

The hotel category saw the highest increase in overall spending of 7.07
per cent, followed by grocery at 6.24 per cent and restaurants at 5.15
per cent. Fast food restaurants continued to fuel the spending growth
in the restaurant category, with an increase in dollars spent of 8.75
per cent, compared to the same period in 2012.

According to the Moneris Spending Report, pet owners continued to be
especially kind to their animals this quarter, as pet stores and pet
foods saw the greatest spend increase within the specialty retail
category, at 12.15 per cent. This was followed by sporting goods at
7.96 per cent and florists at 5.20 per cent.

Normally a strong category, apparel saw its spending drop slightly
by-0.42 per cent in the first quarter, compared to the same period last
year. Within the specialty retail category, book stores experienced a
spending decrease of -4.66 per cent, followed closely by cameras &
photography at -4.42 per cent.

With an increase of 7.22 per cent, Alberta led the way in spending
growth in Canada, followed by Newfoundland and Labrador at 6.05 per
cent and Saskatchewan at 5.93 per cent. Ontario experienced moderate
growth in Q1 compared to the same period last year, at 1.99 per cent.
At the bottom of the spending pack were New Brunswick, with an increase
in spending of -0.12 per cent, followed by Nova Scotia at 0.04 per cent
and Prince Edward Island at -0.62 per cent.

Debit card spending (3.78 per cent) continued to outpace credit card
spending (2.98 per cent) in the first quarter, compared to the same
period last year, which may indicate a heightened awareness among
Canadians around the need to reduce household debt. Nationally, the
overall credit to debit ratio was 58.9 per cent to 41.1 per cent while,
with Ontario showing the highest credit to debit ratio at 63.1 per cent
to 36.9 per cent. Conversely, New Brunswick experienced the lowest
credit to debit card ratio (49.1 per cent : 50.9 per cent) followed by
Manitoba (at 49.4 per cent : 50.6 per cent).

“This quarter continued to be positive one for merchants and for the
Canadian economy,” said Malcolm Fowler, Vice President of Marketing,
Moneris Solutions Corporation. “As we enter the second quarter, it will
be interesting to see if spending continues to increase or if it levels
off – which we will continue to monitor accordingly.”

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
merchants.

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. Through its Ernex division, Moneris 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.

SOURCE Moneris Solutions Corporation


Source: PR Newswire