Moneris Solutions Corporation

Moneris Solutions Corporation

April 18, 2011 12:14 ET

The Moneris Spending Report Shows Positive Growth in Canadian Spending

First Quarter of 2011 Brings Higher Spending on Travel, Entertainment and Food

TORONTO, ONTARIO--(Marketwire - April 18, 2011) - Moneris Solutions, Canada's largest credit and debit card processor, announced today that the Canadian retail economy fared better in the first quarter of 2011, compared to the same period last year. The Moneris Spending Report showed an overall increase of two per cent during the first three months of 2011.

The travel industry saw the largest growth in spending, with an increase of 11.98 per cent, including a spike of 26.62 per cent in February, as Canadians planned their winter getaways. Hotels also saw an increase in dollars spent of 4.51 per cent during the first quarter.

Restaurants and entertainment categories continued to see a positive growth in the beginning of 2011, with an increase of 4.68 per cent and 2.29 per cent, respectively. Fast food restaurants saw the largest increase compared to the same period in 2010, with a growth of 7.24 per cent in spend. The increasing adoption of tap & go payment methods is a contributing factor to this growth.

Apparel category experienced a significant increase of 7.69 per cent in dollars spent in the first quarter. Notably, men's clothing saw the largest jump in sales, with an increase of 49.16 per cent in dollars spent over the same period last year.

The Moneris Spending Report also showed that spending on specialty retail was up 1.17 per cent in dollars spent. Spending at jewellery stores and florists increased 6.78 per cent and 10.94 per cent respectively during the month of February, as a result of Valentine's Day purchases. However, electronic stores realized a 3.52 per cent decrease. Department store spending maintains its downward trend from the past two quarters of 2010, with an 11.98% decrease in the first quarter of 2011.

Events, such as St. Patrick's Day, were a great success this year, generating 21.22 per cent and 10.95 per cent growth for restaurants and drinking places, compared to 2010. On St. Patrick's Day, spending was up 65.82 per cent at drinking places, compared to the previous week.

With a 3.97 per cent volume increase, Newfoundland saw the biggest percentage growth across Canada, compared to the first quarter of last year. Quebec and Saskatchewan also led the growth, with 3.21 per cent and 3.14 per cent increase in dollars spent, respectively. Prince Edward Island saw an increase of 2.67 per cent in dollars spent. All other provinces also experienced an increase in overall spending, with the exception of New Brunswick, which was down 0.64 per cent compared to the same period last year.

"The beginning of 2011 has been positive for merchants and a strong indication of what we could expect from consumer spending for the rest of the year," said Jim Baumgartner, President and CEO, Moneris Solutions.

About The Moneris Spending Report

The Moneris Spending Report provides a snapshot of consumer spending activity in Canada by analyzing credit and debit card transaction data. As the market leader with the largest merchant base, Moneris presents detailed analysis and insight on a quarterly basis. The percentages cited are derived from actual sales volumes – the dollar values of credit and debit card transactions being processed by merchants.

About Moneris Solutions

As one of North America's largest providers of payment processing solutions, Moneris offers credit, debit, wireless and online payment services for merchants in virtually every industry segment and processes more than three billion transactions annually. Through its Ernex division, Moneris offers electronic loyalty and stored-value gift card programs. With more than 350,000 merchant locations, Moneris provides the hardware, software and systems needed to improve business efficiency and manage payments. For more information please visit www.moneris.com.

Contact Information