As consumers begin to show more confidence in the economy, small U.S. retailers are likely to see higher sales levels in the near future. But in order for sales to rise, these businesses will need to have more customers frequent their stores.
While every small business owner wants more sales, additional customers on the property can lead to greater risk, which is why general liability insurance policies need to be revisited before sales growth is expected.
Consumer confidence surges in June
June proved to be another strong month for Americans, as The Conference Board Consumer Confidence Index hit 81.4, up from 74.3 in May. Consumers showed improved sentiment toward current and future prospects as well, with increases to the Present Situation Index and the Expectations Index.
“Consumers are considerably more positive about current business and labor market conditions than they were at the beginning of the year,” said Lynn Franco, director of economic indicators at The Conference Board. “Expectations have also improved considerably over the past several months, suggesting that the pace of growth is unlikely to slow in the short-term, and may even moderately pick up.”
Spending rises with higher incomes
The spike in confidence during May led to increased consumer spending that month as well, and the same trend could occur in June.
Following a 0.3 percent dip in April, spending increased 0.3 percent in May, according to the U.S. Department of Commerce. The major factors that are leading to heightened spending levels include rising home prices, a better jobs market and bigger income gains, all of which have helped offset the pick up in income taxes.
“As we get further out in time and the fiscal drag fades, spending can do better,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics, told Bloomberg. “The second quarter is looking a bit softer, but the economy should show some improvement.”
Should higher confidence and spending levels lead to additional sales at small retailers in the U.S. , owners of these companies would be wise to look over their liability insurance policies to ensure they are adequate.
With more customers in the store, the risk of a fall that leads to an injury increases, and a single incident can be damaging for a small business. Liability insurance can help small business owners defend against these claims, and potentially prevent the doors from being closed for good.