Commerce Department issues positive report for retailers
January 31, 2013

Since the Great Recession, retailers have had a variety of hardships to overcome, as consumer spending fell victim to high unemployment rates and poor home values. However, 2012 posted more substantial gains in revenues, and retailers have shifted strategies to achieve the strongest profits despite turbulent economic conditions. This includes adoption of advanced transaction processing technology that allows merchants to accept credit card payments through a variety of platforms.

The U.S. Department of Commerce recently released its latest consumer spending report which revealed that the economy strengthened in the final months of 2012. Average incomes increased at a faster rate than any other period in the past eight years, driving higher revenues for the nation's merchants and retailers.

According to the Commerce Department, consumer spending increased 0.4 percent in November, and another 0.2 percent in December. Bloomberg conducted a separate survey, in which 72 economists believed that consumer spending actually increased 0.3 percent in December, riding off of a 2.6 percent increase in household incomes.

As household spending accounts for the vast majority of the U.S. economy, this is good news for all merchants going into 2013. Retailers should consider adopting integrated payment systems to ensure no potential revenues are lost at the point of sale. 

Nexus: G-WEBCD3