States that Reopen Early See the Economic Benefit of Local Sales Growth According to New Fivestars Data

Small business spending at physical stores in California, Texas, Georgia and Florida increased 18% compared to last weekend, according to Fivestars. The “Small Business Reopen Report” from Fivestars, one of America’s largest local commerce companies, showed that despite sales being down 63% from this time last year, select states that have lifted stay-at-home restrictions are seeing an economic benefit.  

A comprehensive overview of consumer spending, the Small Business Reopen Report analyzed millions of aggregate sales and foot traffic data points from thousands of merchants in California, Texas, Georgia and Florida from May 7-10, 2020 to the prior weekend of April 30 - May 3, 2020 and from this time last year May 9-12, 2019.

Despite Concerns Over Safety, Florida and Texas See Surge in Sales 
This weekend, Florida and Texas residents proved they are ready to gradually get outside and put money back into their local economies. Among the four states, those that were opened both weekends are further along on the path to recovery and Florida saw the greatest increase in overall sales which are up 31% since last weekend compared to Texas at 19%, Georgia at 18% and California at 8%.

What’s more, consumers jumped at the chance to visit beauty salons and clothing stores in Florida and Texas. In fact, clothing stores in Florida saw a 10x increase in sales from last week and Texas saw a 149% increase in sales at beauty salons. 

The restaurant industry, however, is seeing a slower recovery. With the exception of Georgia which experienced a 22% increase in sales from the week prior, states like Texas only saw sales grow by 9%, and Florida and California saw weekly sales increase by 6% pointing to lingering concerns for reopening dining rooms in the states that allow for it currently. 

A more detailed look at sales for the states is as follows: 

Florida’s sales overall jumped 31% compared to last weekend, but are still down 55% overall compared to last year

• Retail clothing stores sales were up 1075% from last week, but down 60% from the same time last year 
• Restaurants sales were up 6%, but down 70% from same time last year
• Active life (bike/boat rentals) was up 294%, but down 92% from same time last year

​Texas’ sales jumped 19% compared to last weekend, but are still down 63% overall compared to last year 

• Retail clothing stores sales were up 60% from last week, but down 54% from last year   
• Beauty and spas sales were up 149%, but down 72% from last year   
• Restaurants sales were up 9%, but down from 79% from last year

Georgia’s sales jumped 18% compared to last weekend, but are still down 66% overall compared to last year  

• Retail clothing store sales were up 56% from last week, but down 73% from last year 
• Beauty and spas sales were up 22%, but down 72% from last year 
• Restaurants sales were up 22%, but down 66% from last year 

California’s sales stayed relatively level at 8% since last weekend, and are still down 68% overall compared to last year   

• Auto Repair Shop sales were up 24%, but down 74% from last year
• Restaurants sales were up 6%, but down 72% from last year
• Vape and Tobacco Shops sales were up 12%, but down 66% from last year

“In the past two weeks alone, the increase in local merchant sales is encouraging,” said Victor Ho, Founder & CEO of Fivestars. “But still, they’ll need thousands of dollars to make up for lost business. Right now, we need to come together as a community to help local merchants weather this storm, by intentionally choosing to shop at local businesses when we feel safe to.”

To learn more about Fivestars, visit fivestars.com 

About the Study
Fivestars analyzed millions of data points from its platform from April 30 - May 10, 2020 and May 9 - May 12, 2019 representing customer traffic and sales at over 14,000 SMBs nationwide. The 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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Maggie Philbin

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