Arizona and Florida See Biggest Sales Growth Compared to California, According to Fivestars’ Weekly Small Business Reopen Report

According to the second weekly Small Business Reopen Report from Fivestars, one of America’s largest local commerce companies, states that have newly reopened such as Arizona and Florida, are seeing an increase in sales, while others like California fall behind. The findings show that Arizona’s sales jumped 35% compared to last week, followed by Florida with a 17% jump, Georgia at 11%, Texas at 10%, and California at 5%. The data shows that local economies are starting to demonstrate slow but consistent growth, as small business sales across the United States reach a near 50% recovery rate compared to this time last year.

A comprehensive overview of consumer spending, the weekly Small Business Reopen Report analyzed millions of aggregate sales and foot traffic data points from thousands of merchants in California, Texas, Georgia, Florida and Arizona from May 11-17, 2020 to the prior week of May 4-10, 2020 and from this time last year, May 13-19, 2019.

States that began reopening first are seeing a plateau in recent sales, but continue a slow and steady recovery

Over the past week, residents in reopened states continued to prove they are putting money back into their local economies. Among the five states analyzed, Arizona and Florida launched their reopening plans most recently, in the past 15 days. These two regions have seen a higher spike in sales over the past week as shoppers prove eager to return to their local shops. 

However, small business sales in states like Georgia, whose reopening plan commencement was over 20 days ago, have started to plateau after an initial rush of shoppers. Still, all reopened states are slowly but steadily progressing on the path to recovery, leaving behind states like California, who have yet to open most businesses due to a more conservative reopening plan. 

As select states reopen, Arizona and Florida see surge in apparel and spa sales

Overall, the spa and apparel industries are seeing a surge in sales as most states are recording the largest growth within these business verticals, compared to food services, pet stores, and smoke shops. Arizona saw the highest increase in apparel sales, at 133%. Compared to last week, California saw a 79% increase in apparel sales, followed by Georgia at 53%, Florida at 39%, and Texas at 12%. 

With the exception of Georgia, where sales were up a mere 5%, spa activity is on the rise. Arizona saw a spike of 85%, Texas sales increased 53%, and California is up by 12%. Most shockingly, the beauty and spa sales in Florida spiked up drastically with a 498% increase in just one week.

A more detailed look at sales by state is as follows: 

Arizona’s sales overall jumped 35% compared to last week, but are still down 46% overall compared to last year

• Apparel sales were up 133% from last week 
• Beauty and spa sales were up 85% from last week, but down 34% from the same time last year
• Food service sales were up 16% from last week, but down 54% from the same time last year
• Tobacco and vape sales were up 10% from last week, but down 50% from the same time last year

Florida’s sales overall jumped 17% compared to last week, but are still down 36% overall compared to last year

• Apparel sales were up 39% from last week 
• Beauty and spa sales were up 498% from last week, but down 87% from the same time last year 
• Food service sales were up 9% from last week, but down 47% from the same time last year
• Pet service sales were down 11% from last week, and down 57% from the same time last year
• Tobacco and vape sales were up 4% from last week, but down 21% from the same time last year

Georgia’s sales jumped 11% compared to last week, but are still down 53% overall compared to last year  

• Apparel sales were up 53% from last week, but down 51% from the same time last year 
• Beauty and spa sales were up 5% from last week, but down 69% from the same time last year 
• Food service sales were up 13% from last week, but down 66% from the same time last year 
• Pet service sales were down 9% from last week, and down 76% from the same time last year
• Tobacco and vape sales were down 10% from last week, and down 35% from the same time last year

Texas’ sales jumped 10% compared to last week, but are still down 48% overall compared to last year 

• Apparel sales were up 12% from last week, but down 39% from the same time last year   
• Beauty and spa sales were up 53% from last week, but down 54% from the same time last year   
• Food service sales were up 4% from last week, but down 65% from the same time last year
• Pet service sales were up 12% from last week, but down 40% from the same time last year
• Tobacco and vape sales were up 12% from last week, but down 22% from the same time last year

California’s sales stayed relatively level at 5% since last week, and are still down 61% overall compared to last year   

• Apparel sales were up 79% from last week, but down 79% from the same time last year
• Beauty and spa sales were up 12% from last week, but down 95% from the same time last year   
• Food service sales were up 2% from last week, but down 60% from the same time last year
• Pet service sales were up 3% from last week, and up 3% from the same time last year
• Tobacco and vape sales were up 17% from last week, but down 49% from the same time last year 

“Small businesses are worth fighting for,” said Victor Ho, Founder & CEO of Fivestars. “Our data is showing that we’re at a near 50% recovery rate across the country, up more than 15% from last week, which shows that we’re making progress in revitalizing our local economies. Small businesses are the soul of our country and if we come together to support them as local governments lift restrictions, we will all recover as one economy and one community.”

This is the second weekly Small Business Reopen Report from Fivestars. Last week’s report analyzed small business spending at physical stores in California, Texas, Georgia and Florida, and found an increase of 18% in sales compared to the prior weekend. Overall, the study found that despite sales being down 63% from this time last year, these select regions saw an economic benefit.  

To learn more about Fivestars, visit fivestars.com.

About the Study
Fivestars analyzed millions of data points from its platform from May 11-17, 2020 and May 13-19, 2019, representing customer traffic and sales at over 14,000 SMBs nationwide. The weekly report, titled “Small Business Reopen Report,” reveals a number of insights into the economic impact of reopening small businesses. 

About Fivestars
Fivestars is one of America’s largest local commerce platforms. Founded in 2010 by former McKinsey analysts Victor Ho and Matt Doka, the company’s mission is to help local businesses turn every transaction into a relationship. The company offers a robust payment and customer loyalty platform, enabling local businesses to increase customer retention, driving sales. For more information visit: www.fivestars.com.
 

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