SCI spike over Easter good for retailers

The Spark Cash Index (SCI) showed a rise in ATM cash withdrawal values over the Easter period of 6% higher than the withdrawals over March 2012 and 2% over April 2011. A rise in withdrawals signals an increase in consumer spending and is likely to have provided a much needed-boost for local retailers.

For the period 3-9 April 2012, the average cash withdrawal value was R450, against R424 recorded in the corresponding week in March 2012 and 2% higher than the R441 recorded over the 2011 Easter period (19 to 25 April), even though last year, Easter also fell in the busy month-end period. In addition, it was approximately 22% and 6% higher than the withdrawal values recorded over the Easter periods in 2009 and 2010 respectively.

According to Marc Sternberg, MD of Spark ATM Systems, the increase in the value of cash in circulation over the Easter holiday period is positive and is in line with the historic trend for this time of year.

"The Easter period traditionally records the first post-Christmas positive spike in average cash withdrawal activity, following a significant drop-off in withdrawal values from December to January and stabilisation in February and March."

Sternberg adds that due to the positive Easter ATM figures, it is likely that the highest April withdrawal value of R423, recorded in 2011, will also be exceeded this year.

The SCI is a useful 'real-time' gauge of consumer spending, utilising the company's ATM systems' network of over 1400 ATMs located countrywide to reflect accurate, broad and timely cash demand and utilisation data. These ATMs are typically located in convenience stores, petroleum stations, specialist retail nodes and leisure & hospitality venues.