Sales growth at small businesses slowed during June as consumers generally spend less during the summer. However, sales are still up compared to this time last year.
This data comes from payments service provider Fiserv, which analyzes point-of-sale transaction data from small businesses to track sales trends for its monthly Small Business Index.
According to the Index, sales dropped by four points from May to June, with a 2.9 percent decrease in overall sales. Fiserv found that much of the decrease came from in-person sectors like retail, restaurants, and accommodations. However, spending did increase in some areas, like increases in insurance premiums and digital subscription models.
Prasanna Dhore, chief data officer at Fiserv said in a statement, “As the quarter came to a close, consumers throttled back both spending and foot traffic across retail, restaurants and other service-based businesses.”
It’s fairly common for consumer spending to slow during summer. So, these findings aren’t anything new for seasoned small business owners.
However, it is generally a good idea for businesses to understand these ongoing trends as they relate to things like consumer spending and foot traffic. If you’re just getting started, then a clear picture of what to expect throughout the year may help you plan for various expenses, earnings, and marketing opportunities.
For example, summer may be an ideal time for retail businesses to participate in events or try unique promotions to increase foot traffic. Other businesses may even find that slowing down for a few months may help them better prepare for the busy fall and winter seasons.
Each business is likely to have a slightly different experience and prioritize various goals. So carefully consider how your annual objectives may fit into a slower season and make the most of this time if the decrease in sales does impact your industry.
Image: Envato
This article, "Consumer Spending Slows This Summer" was first published on Small Business Trends
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