Even Before Shutdowns, Small Businesses Saw Slump in Spending

(Bloomberg) -- Last Friday, before hundreds of thousands of workers were sent home and “social distancing” became the norm, small businesses saw a precipitous drop in spending.

Spending at hotels and other lodging businesses was down 63% on March 13 compared with March 15, 2019, also a Friday. Restaurants and bars saw revenue fall 20% and 16%, respectively, according to data compiled by payment processor Womply.

“With many restaurants closed or only open for take out, that number should continue to drop rapidly,” Womply said in an emailed statement.

The data, which tracks spending with credit and debit cards, shows a significant pullback by U.S. consumers, who have been staying indoors in an attempt to stem the spread of the Covid-19 coronavirus. Major card networks including Visa Inc., Mastercard Inc. and American Express Co. have also warned that cardholders are spending less.

Grocery stores are benefiting as consumers rush to stock up on food and supplies, according to the Womply data, which tracks 400,000 small businesses in the U.S. Grocers reported more revenue on Friday than they had on any other day this year, Womply said.

©2020 Bloomberg L.P.