Luis of the Fresh Produce Industry Discussion Group is one of the greatest resource people you will run across, an "answer man" among answer men. Recently I asked the group if anyone had an idea of how much credit card sales account for out of total supermarket sales. I wondered if the credit crunch and declining credit limits could also impact supermarket sales. Luis ran down the answer and more. Luis, Big Apple and others are great resources for the fresh produce trade, and we could use your help too. Join today.Here is what Luis found:In 2006, 29% of the dollar volume of payments at grocery stores were made with a credit card and 33% with a debit/ATM card. One can also compare payment methods at three different types of restaurants. So, credit may be squeezed for a few but the majority is likely to have to
deal with higher fees (transaction, what-not etc.) and higher interest rates as banks shy away from risk and hunt for revenue.
More details from this FRB Boston report (with some rounding error).
http://www.bos.frb.org/economic/eprg/conferences/payments2006/papers/...
Page 13
Payment Method Share of Dollar Volume: 2006
Grocery Stores
Cash: 21%
Check: 18%
Debit/ATM card: 33%
Credit Card: (25+3+1)= 29%
Page 15.
Payment Method Share of Dollar Volume: 2006
High Priced Restaurants
Cash: 20%
Check: 3%
Debit/ATM Card 12%
Credit Card: (59+5+1) = 65%
Page 16.
Payment Method Share of Dollar Volume: 2006
Mid-Priced Restaurants
Cash: 36%
Check: 2%
Debit/ATM Card 23%
Credit Card: (36+2+1) = 39%
Page 16. Payment Method Share of Dollar Volume: 2006 Quick Service Restaurants Cash: 66% Check: 3% Debit/ATM Card 17%
Credit card: (12+1+0) = 13% Labels: Apples, credit card, FDA, Fresh Produce Industry Discussion Group, Luis
