2. The Focus Is on Consumer Confidence
Since consumers are responsible for approximately 70% of the US economy, it’s critical for retailers to understand their current view of the economy to achieve maximum sales during the Spring Retail Season.
According to Gallup’s early January 2018 poll, 58% of Americans were satisfied with the state of the nation’s economy, compared to 46% during the same January 2017 poll.
Gallup also reported during early February that its Economic Confidence Index for all of was average among citizens in 17 US states, and above-average in 14 states, which might indicate where retailers should make a big push during spring 2018.

3. Priming the Economic Pump
US consumers proved they have the confidence, the money and the mood for spending, with retail sales for the 2017 holiday sales season increasing 4.9%. Online shopping increased 18.1% and the total dollars spent was a new record.
Robust holiday sales were a big boost to a Q GDP that increased 2.6%, and 2.3% increase for all of 2017, compared to 1.5% for all of 2016; although 2017’s GDP was essentially the same as the 2.2% average annual increase since the recession.
The US economy added 200,000 jobs during January (the experts predicted 180,000), which was a significant improvement from December 2017’s addition of 160,000 jobs. More importantly, wage growth was 2.9%, the best since June 2009.

4. 2018 Retail Sales Should Be Relatively Robust
Of the multiple forecasts for 2018 retail sales, Kiplinger’s is an increase of 4.7%, excluding gasoline, compared to 4.2% for 2017, while eMarketer’s is less ambitious, at 3.7%, or a total of $5.3 trillion.
Kiplinger also forecasts GDP to be 2.9%, unemployment to decline to 3.8% by the end of the year, business spending increasing 7.0% and increasing inflation, from 2017’s 2.1% to 2.5% for 2018.
Trading Economics predicts Q will record the highest consumer confidence index for the year, at 94.5, retail sales increasing 0.36% MOM and consumer confidence economic expectations at 79.83, just slightly less than Q1’s

5. SMBs Feeling Good
According to the Wells Fargo/Gallup Small Business Index survey, the Q index was 107, compared to 103 for Q4 2017, and the highest index of the past 11 years.
The survey also revealed that 52% of small- business owners reported a measurable or significant increase in their revenues during the past 12 months, and 66% expect them to increase during the next 12 months, a record-high percentage.
Other records or near-records in the Q survey were 77% of SMBs expecting good or somewhat good cash flow during the next 12 months (a record) and 38% expecting to increase capital spending during the same period (the best since 2003.)

6. Consumers’ Financial Situation Puts Them in the Mood to Spend
According to Fluent’s Consumer Outlook report, 57% of all survey respondents think their personal economic situation is good, 50% of those with incomes less than $35K, 63% of those $35K– $100K and 56% of those $35K–$100K.
Of all the consumers participating in the survey, 20% said they plan to make a major purchase, such as a home or car, during 2018, 31% for those 18–34 and 17% of those 35 or older.
When asked for a description of how they spent their money, 34% of all respondents said very carefully; 41%, somewhat carefully; 19%, somewhat freely; and 7%, very freely. Those 18–34 had the highest percentage of “very freely,” at 12%.

7. Consumers Continue to Embrace Digital Technologies for Shopping
Despite all the advancements in consumer communications via various technologies, still remains the preferred customer service interaction, at 53%, according to the Fluent Inbox Report 2018, with in-person/in-store second, at 40%.
Of those participating in the Fluent survey, 26% said they visited a store or Website and purchased a product or service after receiving a promotional during the past 6 months. Half of them made the purchase on their smartphone or via a mobile Website.
“Showrooming,” or using a mobile device while shopping in-store, remains relatively strong, with 30% of those with incomes of $49,999 or less looking for a discount/promotion, and 40% for those with incomes of $50,000 or more.

8. Advertising Strategies
A 2018 retail trend from which local retailers can benefit, starting during the spring, is to display, market and promote a smaller selection of higher-quality brands, which will help local retailers compete with the major direct-to-consumer retailers, such as Amazon.
With measurable increases in consumers’ economic confidence and disposable income, retailers should use the spring retail season to highlight summertime/vacation products and services to start to capture more of that business prior to the Memorial Day weekend.
As is almost always the case, SMBs’ biggest perceived challenge is attracting customers, which provides you with an opportunity to demonstrate your value as a marketing/media consultant and problem solver, instead of just another media salesperson.

9. New Media Strategies
It’s clear from the data in the Profiler that consumers are still very responsive to campaigns. Spring fashions and colors and new home improvement products can be the centerpieces of campaigns, especially with various fashion choices and how-to tips.
Ask your employees to record “personal” videos of signs that “spring has sprung,” showing budding trees, wildflowers and more people outside in the warming weather. Post these videos and share them with customers to generate a positive mood about the end of winter.
2018 must be the year that more local retailers equip their sales associates with mobile devices to improve and upgrade interactions with customers in-store and remotely; and the spring retail season is a good time to make this investment.