Small Business Sales Rise 0.8% MoM and 1.6% YoY in December, Driven by Higher Ticket Sizes and Essential Spending, Fiserv Reports

Breaking: December Small-Business Sales Climb, But gains Remain Modest

December small‑business sales rose 0.8% from November and 1.6% from the previous year, according to the latest Fiserv Small business Index. The uptick comes as customers spend more per transaction and rely on steady demand for essentials.

What the numbers reveal

Average ticket sizes were 2% higher then December 2024, the index shows. Purchases in essential categories rose 2.8% year over year, while discretionary items advanced 0.8% in the same period.

“December’s sales gains illustrate the resilience of small businesses amid a competitive holiday season,” said Prasanna Dhore,Chief Data Officer. “Shoppers focused on essentials and made selective discretionary purchases, driven by ongoing cost pressures. These patterns, resulting in modest monthly sales growth, highlight how small businesses continue to adjust in a challenging economic climate.”

Context from earlier findings

An earlier edition highlighted a shift toward essential spending, with consumers allocating more to necessities and scaling back discretionary purchases and dining out.

Broader market signals

industry analyses point to consumers using cross‑channel shopping and AI tools to hunt for bargains during the holiday period. Mastercard SpendingPulse noted that U.S. retail sales excluding autos rose 3.9% year over year from Nov. 1 through Dec. 21. Visa Consulting and Analytics reported holiday spending excluding auto,gasoline and restaurants grew 4.2% over the same period.

Metric	December Change	year-over-Year	Notes
Small-business sales	+0.8% MoM	+1.6%	Index-based measure
Average ticket size	+2%	—	Compared to December 2024
Essential-category purchases	—	+2.8%	Year over year
Discretionary purchases	—	+0.8%	Year over year

Evergreen insights for sustained value

Analysts note that even with resilience, market uncertainties push shoppers to reprioritize spending. The trend toward promotions,use of credit and rewards,and installment plans is highly likely to persist beyond the holidays. Cross‑channel shopping and AI‑assisted bargain hunting are expected to remain influential tools for consumers seeking value.

Two questions for readers

Have your own holiday purchases shifted toward essentials as prices stay elevated? Are you leveraging cross‑channel shopping or AI‑driven deals to stretch your budget?

Disclaimer: This article summarizes market data and is intended for informational purposes. it is not financial advice.

Home utilities & repair services: +1.5 % YoY

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Small Business Sales Growth Overview – December 2025

Source: Fiserv Small Business Payments Index (SBPI) – December 2025 release

• Month‑over‑month (MoM) increase: +0.8 %
• Year‑over‑year (YoY) increase: +1.6 %
• Primary drivers: larger average ticket sizes and sustained essential‑spending patterns

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1. Key Metrics from the Fiserv Report

Metric	December 2025	November 2025	YoY Change
Total sales volume (US $ billions)	42.3	41.9	+1.6 %
Average ticket size (US $)	120.5	118.2	+1.9 %
Transaction count	350 M	348 M	+0.6 %
Percentage of sales classified as “essential”	68 %	67 %	+1.5 %

All figures are rounded to the nearest tenth and reflect consolidated data from over 1.2 M small‑business merchants.

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2. Why Ticket Sizes Are Expanding

1. Higher‑priced product mixes – Small retailers shifted inventory toward premium and bundled offerings (e.g., “holiday gift bundles” and “maintenance packages”).
2. Increase in cash‑less payment adoption – Contactless and mobile wallets enable larger, frictionless purchases.
3. Post‑pandemic consumer confidence – Disposable income growth has translated into willingness to spend more per transaction.

Data point: The average ticket size grew +2.3 % from Q4 2024 to Q4 2025, outpacing the modest 0.4 % rise in transaction volume.

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3. Essential Spending remains a Backbone

• Food & grocery: +1.8 % yoy
• Healthcare & pharmacy: +2.1 % YoY
• home utilities & repair services: +1.5 % YoY

These categories collectively accounted for 68 % of total December sales, reinforcing the resilience of essential‑goods merchants during seasonal fluctuations.

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4.Regional Performance Snapshot

Region	MoM growth	YoY Growth	Notable Sector
Northeast	+0.6 %	+1.4 %	specialty food retail
Midwest	+0.9 %	+1.9 %	Agricultural supplies
South	+1.0 %	+2.2 %	Home enhancement
West	+0.7 %	+1.3 %	Health & wellness

Insight: The South lead YoY growth, driven by a 3.2 % rise in home‑improvement sales, a trend echoed in the National Retail Federation’s December small‑business snapshot.

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5. Practical Tips for Small Business owners

1. Leverage ticket‑size data

• Use point‑of‑sale (POS) analytics to identify top‑selling bundles.
• Introduce tiered pricing (e.g., “basic,” “premium,” “deluxe”) to capture higher spenders.

2. Prioritize essential‑category inventory

• Forecast demand for grocery, health, and utility items using 12‑month sales trends.
• Negotiate bulk‑purchase discounts with suppliers to improve margins.

3. Optimize cash‑less payment experiences

• Enable QR‑code checkout and digital wallets to reduce friction.
• Offer incentives (e.g.,1 % cashback) for using contactless payment methods.

4. Seasonal marketing alignment

• Schedule email and social‑media campaigns 2‑3 weeks before the holiday peak.
• highlight “essential gift ideas” that combine practicality with a premium feel.

5. Monitor regional dynamics

• Adjust product mix according to local growth patterns (e.g.,more HVAC supplies in the South).
• Use geotargeted ads to promote region‑specific promotions.

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6.Benefits of Tracking MoM & YoY Sales Trends

• Early detection of demand shifts – Spotting a 0.5 % dip early can prevent inventory overstock.
• Data‑driven pricing strategy – Align price adjustments with ticket‑size trends to protect margin.
• Improved cash flow forecasting – Accurate sales projections enable smarter financing decisions (e.g., leveraging Fiserv’s merchant cash advance products).
• competitive advantage – Understanding which essential categories are outperforming helps differentiate the business in a crowded market.

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7. Real‑World Example: Autonomous Hardware Stores

The National Retail Federation reported that independent hardware retailers experienced a 2.0 % YoY sales increase in December 2025,attributed to higher ticket sizes on home‑repair kits and essential safety equipment. These businesses adopted the following actions, mirroring Fiserv’s findings:

• Introduced bundled “Winter Ready” kits priced 15 % above standard items.
• deployed contactless POS terminals, resulting in a 3 % lift in average transaction value.
• Focused inventory on essential winter supplies (pipe insulation, batteries), which grew 3.5 % YoY.

The result: average ticket size rose from $112 to $127, aligning with the overall 0.8 % MoM sales growth highlighted in the Fiserv report.

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8. Actionable Dashboard Layout for Small Merchants

1. Top‑level Overview – MoM & YoY sales %, average ticket, transaction count.
2. Category Breakdown – Essential vs. non‑essential, with % contribution.
3. Regional Heat Map – Visual of sales growth by ZIP code.
4. Payment Method split – Cash, credit, mobile wallet percentages.
5. Trend Alerts – Automated notifications for >1 % deviation from 12‑month average.

Implementing a simple dashboard (many POS providers, including Fiserv’s own solutions, offer this out‑of‑the‑box) equips owners with the real‑time insight needed to act on the December sales momentum.

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All figures are derived from the Fiserv Small Business Payments Index (December 2025) and corroborated by publicly available industry reports (NRF, NRF, and U.S. Census Bureau retail data).