January Deep Freeze Impacts Small Business Foot Traffic, New Fiserv Data Shows

Core Insights - Fiserv's Small Business Index for January 2026 indicates a decline in small business sales due to seasonal shifts and harsh winter storms, with the index dropping 1 point to 143 [1] - Year-over-year sales increased by 0.7%, while month-over-month sales decreased by 0.5% [1] Consumer Behavior - Consumer foot traffic experienced a significant year-over-year decline of 2.0%, the sharpest since mid-2022, and a month-over-month drop of 0.8% [2] - Discretionary spending softened, with discretionary sales falling 0.4% year-over-year and 0.7% month-over-month, influenced by a 2.4% year-over-year decline in foot traffic [3] Sector Performance - Essential sales remained stable year-over-year, growing by 2.2%, but were flat month-over-month [3] - Professional and Administrative Services showed growth, with Administrative and Support Services increasing by 1.1% month-over-month, and Tax Preparation Services growing by 9.3% year-over-year and 5.6% month-over-month [4] - Small business retail sales were flat year-over-year and month-over-month, with core retail categories (grocery, clothing, furniture) growing by 1.5% year-over-year, while non-core retail categories declined by 2.7% [5] Restaurant and Service Sector Trends - Restaurant sales fell by 1.8% year-over-year, primarily due to a 3.6% decline in foot traffic, with limited-service restaurants experiencing the largest sales drop of 3.4% year-over-year [6] - Average ticket sizes in restaurants increased by 1.6% year-over-year, providing only a partial offset to the decline in sales [6] Impact of Winter Storms - The report highlights the impact of Winter Storm Fern on various regions and business types across the U.S., affecting consumer behavior and sales trends [7]