Store Front Business Index - December 2016
While Donald Trump’s victory may have propelled Dow Jones to an all time high, it had little affect on the state of the Main Street.
The latest PYMNTS Store Front Business Index™ reveals that while store front businesses showed growth in Q3 2016, that growth dipped slighty in comparison to Q2 2016.
According to the index, Main Street merchants scored a 1.7 percent growth in Q3 2016, a dip from 1.9 percent noted in Q2 2016. So is Main Street sounding the alarm? Not really. Even though there was a slight decrease in index score, it still marked an overall increase from where the GDP was a year ago.
All told, the new Store Front Business Index™ Score for Q3 2016 was 115.9 points.
Other key takeaways from the index for Q4 2016 include:
- Building Contractors/Service and Repair, fitness, and professional services companies showed the fastest growth in this quarter’s index, with growth rates of 5.1 percent, 4.6 percent and 3.9 percent, respectively.
- Main Street USA boasted a 1.7 percent growth in Q3 2016.
- Mountain and Southern states continued to score high in terms of employment and wages. The two regions grew by 3.7 percent in Q3 2016.
The PYMNTS Store Front Business Index™ provides a quarter-by-quarter indexing of the health of a subset of small businesses in the United States. Specifically, the index focuses on “store fronts,” or the shops that line the main and side streets of our local communities.
To compile the index, we used data from the Quarterly Census of Employment and Wages provided by the U.S. Bureau of Labor Statistics. All told, more than 10 million data records covering the number of establishments, employees and total wages are used to developed the index. The index is calculated as a weighted average of three factors: number of locations, number of employees and total wages paid for select industries.
The index also includes a conversation with Vince Petryk, founder of J.P. Licks Ice Cream, who shared his main street success mantra that has helped him compete with deep pocketed national chains. Petryk founded his chain of ice-cream stores in Jamaica Plain, a Boston neighborhood, in 1981. Since then, the business has expanded to over a dozen locations around greater Boson area.
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