Consumer behaviors have become increasingly volatile in recent years. The slightest change in overall economic conditions can have profound impacts on the way Americans spend money. Retailers and other businesses in a variety of industries can easily adapt to these evolving trends by investing in advanced money counters to save time performing cumbersome backroom financial processes.
According to a recent Gallup poll tracking consumer spending behaviors, U.S. households reported spending slightly more money on average in October than they did in September. By having respondents list a typical day's expenditures with exclusion of recurring payments such as bills and large purchases such as automobiles and homes, the organization determined the average consumer is now spending $85 per day. While this measurement was $95 per day in August, it is $4 higher than what it was in September.
Overall confidence in the U.S. economy has made significant strides as well. The Washington Post recently cited data from the U.S. Department of Commerce showing retail sales charted incremental growth in October despite warnings from many economic experts who predicted the recent shutdown of the federal government would have a damaging effect on consumer sentiment. In fact, The Post explained political standoffs about debt and other fiscal issues really only impact financial market channels and not household shopping behaviors.
How will the current state of the economy impact the retail industry?
The real influence of U.S. economic conditions on spending habits is much more nuanced. For example, many Americans who have experienced slight gains in confidence in recent months are still wary of creating debt or falling into poor spending habits. As the holiday shopping season approaches, customers at retail establishments may be more inclined to make purchases with cash rather than credit cards. A more fiscally conservative public doesn't necessarily equate with reduced retail revenue. The Wall Street Journal said a recent 1.4 percent increase in after-tax income for American households will likely lead to 5.4 percent growth in holiday shopping sales this year.
Small and medium-sized retailers can fully prepare for these changes in consumer spending habits by utilizing cash counter machines to count daily income. Stores that are used to relying on credit card payments may experience challenges this year if they are unable to count large sums of cash without wasting valuable time and resources.
December 10, 2013