Happier Americans Are Bigger Consumers Regardless of the retail season, its consumers who control the retail marketplace; and this year’s spring retail season will be no different, except for Easter – Sunday, April 16 – will be the latest since April 20th of 2014. For the week ending Feb. 12, Gallup’s US Economic Confidence Index was well within the positive range, at +7, although that was half of what it was during the week of President Trump’s inauguration. It was the first time since 2001 that a majority of Americans (54%) said it was a good time to find a quality job when responding to a February 2017 Gallup poll, increasing from 50% for January 2017.

Improving Economic Conditions Since 1950, the S&P 500 increased during January and February (which it did during January and February 2017 by approximately 5%) for 22 of those years, which resulted in a double-digit gain by the end of the year. William Dudley, president and CEO of the Federal Reserve Bank of New York, thinks consumer spending in the retail sector is not increasing as expected because households are more cautious about using home equity to finance major retail purchases. Trading economics is forecasting US retail sales to increase 0.32% for Q1 2017 and 0.2% for Q2 2017, which would be year-over-year increases of 3.1% and 3.0%, respectively.

Target the Heavy Spenders Viant, a Time Inc. company, describes the heaviest retail spending segments as Digital Introverts, Dads and Convenience Shoppers, spending on-average during the past 90 days prior to the survey, $665, $617 and $576, respectively. They were 29% more likely to be frequent gift givers, and 59% shopped on their smartphones. In terms of their media and TV habits, they are 70% more likely to own a Smart TV and 47% more likely to have on OTT device (Roku, Apple TV, etc.) Interestingly, the Viant research found that Digital Introverts do not skew to a specific gender or age and are more likely rural; Dads have above-average incomes; and TV spots and online reviews influence the shopping choices of Convenience Shoppers.

Attract More Shoppers with Social Media According to Nielsen’s Q3 2016 Social Media Report, the #1 activity in which light, medium and heavy social media users participated was to learn about products and services, at 36%, 36% and 39%, respectively. The percentages were similarly very close for any Internet purchase by light, medium and heavy social media users during the past 12 months – 78%, 80% and 79%, respectively – compared to 46% for non-social media users. Internet purchases during the past 12 months of $500 or more was the largest category for light, medium and heavy social users, at 41%, 41%, and 38%, respectively, compared to 34% for all US adults, 18+, and 22% for non-social media users.

Factors That Affect Spring Sales Although technology often steals the headlines for retailers, product offerings and competitive pricing will still be the dominant factors that attract consumers and their dollars to traditional brick-and-mortar stores. According to many clothing/fashion forecasters, American apparel will continue to trend more and more casual, with athletic brands becoming more like sportswear and sportswear brands becoming more like athletic wear. Don’t underestimate the effect of gasoline prices on spring retail sales, especially for consumers of moderate incomes. As of early February 2017, April gasoline prices were projected to average $2.41/gallon; May, $2.48; and June, $2.51.

Advertising Strategies Because the Viant research shows the Dad segment of the heaviest retail spenders likes to shop with family and friends, promote a “Group Shopping Day” on a Saturday, with a progressive discount when multiple members of the shopping group purchase items. The Convenience Shopper segment values easy parking, so promote a day or weekend with valet parking. All shoppers can bring their cars to your front door and have their car parked and retrieved to make it easier and more convenient to shop. Since a large portion of Americans plan to put their tax returns into savings, which is generally good for the economy, offer a “tax savings” discount based on every tax return dollar customers added to their savings as an incentive to spend some of it in the store.

New Media Strategies Plan for your store staff to participate in a community spring cleanup campaign and invite customers to join you. Distribute a coupon to all participants and announce and post photos and videos of the event on the store’s Website and social media pages. Use social media to announce new store items for the spring and offer a coupon for a qualifying purchase of two or more items. Assign one or more store staff members to visit the local parks and/or state parks and take photos and/or create videos of the greening of the parks with the onset of spring. Be sure to include images of wildflowers and let social media visitors know where to see them.