Small business owners and entrepreneurs are truly the backbone of American ingenuity and innovation. These small businesses, be it a local florist, jeweler, boutique or independent community drug store, are an important source of employment and economic activity and often serve as a cornerstone of their communities.

Although we all know the importance of small business in our country, defining or measuring what constitutes or defines a small business is quite challenging. There is no gold standard. The U.S. Census Bureau’s Business Employment Dynamics (BED) tool however, makes it clear that small firms – under 20 employees – are the backbone of our economy.

According to the BED, 4.4 million firms, or 88 percent of all U.S firms, employ less than 20 employees. In contrast, approximately one-tenth of one percent of all U.S. firms are large firms employing over 2,500 employees.

So no matter how you cut it, American small businesses and entrepreneurs are an economic anchor. Just like a physician who checks a patient’s pulse to measure the strength of the heart, checking on main street activity is an important indicator on the comparative health of the economy. They supply vitality to our neighborhoods, provide a suitable setting for civic and community participation and spur local development and growth. Learn about this and more in NRF’s June Monthly Economic Review.

As we look into the psyche of the American consumer, it’s easy to base perceptions on some of the latest news. Surprising growth in April retail sales,  decreasing unemployment numbers and a rise in U.S. payrolls appear to be contributing to a more confident shopper. But when we dig a little deeper it’s actually quite a different story – filled with dwindling hopes for improvement in the labor force, plans to spend less overall and a shift in the way consumers prioritize their budgets.

According to NRF’s May consumer survey conducted by Prosper Insights and Analytics, which gauges the level of impact the economy has on consumers’ spending plans, 54 percent of those surveyed said they are spending less to compensate for the state of the economy. Nearly another four in 10 say they are dining out less frequently for that same reason. Though these figures are both either flat or slightly down from the previous month, neither presents a terribly rosy outlook for consumer spending plans.

More highlights from the survey include:

• 26 percent say they are shopping at discount stores more often, hoping to stretch their budgets as far as they can.
• Nearly one-quarter will cut back on “small luxuries” and discretionary expenditures like gourmet coffee and high-end cosmetics.
• Three in 10 will spend less on apparel.
• Nearly one-third say they are travelling less or not at all – a trend to watch as important “travel” holidays such as Memorial Day and Independence Day approach.
• 43 percent say they are shopping for more-frequent sales.

When it comes to consumers’ belief in a strong economy, the impact the calendar has on their spending demands, and their plans for investing in their savings this year, it seems consumer sentiment as a whole is still a bit unpredictable.

Although Reuters and the University of Michigan found earlier this month that consumers were much more confident about the economy, Prosper Insights and Analytics analyst Pam Goodfellow says “people want to believe in future growth for the economy, but they are having a hard time keeping the faith and are trying to be as conservative as their budgets will allow.”

For a bigger “Consumer Snapshot,” watch Prosper’s latest video below, and for more in-depth analysis and information on consumer sentiment and the economic landscape, visit the NRF’ Foundation’s Retail Insight Center.

It’s enough to make your head spin.

Understanding this challenge, as well as the specific needs of retailers, reporters and executives for up-to-date and comprehensive industry data, the NRF Foundation has launched the Retail Insight Center, made possible by a contribution from KPMG.

Source: Bureau of Labor Statistics, 2012

The Retail Insight Center is a comprehensive online resource that provides easy access to previously fragmented industry research from government sources, NRF studies, and historical and current consumer trend data from BIGinsight. In essence, the Insight Center is a one-stop-shop for data and insights into retail industry trends, from sales, employment and consumer spending to the popularity of smartphones and tablets.

Today’s launch comes with an added bonus. Our Spotlight on Retail Employees report combines data from these sources into one place to tell an important story about the retail industry – that America’s largest private sector employer really is an industry of opportunity from coast-to-coast. The report showcases the diversity in jobs, demographics of retail employees and a whole lot more.

Anyone can access the Insight Center by visiting research.nrffoundation.com – but before you dive in, here are five things you need to know:

 1. Data in the Retail Insight Center is not from a single-source. The site features NRF’s original research, derived retail industry sales data, some partnered research, relevant public government data, and timely consumer data from BIGinsight. Information is organized by topic, not source.

2. Updates are made automatically based on the most recent data available, providing the most recent data for users.

3. Users have the option to export charts, download the data, or build a report combining research from various parts of the center. Want to share the information with someone else or your entire network? Users can send the page they’re viewing using integrated social media “share” buttons.

4. Charts are customizable after logging in. Users can select a date range, demographics, and even type of chart – such as a pie, bar, or line graph – where the data is available.

5. Most pages feature custom links to relevant materials that live elsewhere on NRF sites, such as blog posts and news releases.

Navigate around, customize a chart of your choice, and let us know what you think.

Generational aspects aside, there is a common issue all age groups are facing – how to handle the challenges that exist in today’s economy.  When it comes to millennials specifically, we wanted know whether they are spending less and what is the depth of the economic impact on young adults’ shopping habits. We went to our friends at Prosper Insights & Analytics to find out.

Their April Consumer Survey revealed that 89.5 percent of young adults feel the economy is affecting their spending plans in some way. But for many, it’s evident that the current state of the economy is not going to stop them from frequenting their favorite restaurant or force them to dig through coupons or even circulars for the best deals.

After evaluating the data, I sought the help of Dianne Kremer, senior analyst at Prosper Insights & Analytics. Here’s what she had to say about the mindset of today’s young adults:

“Despite having a higher unemployment rate, 18- to 24-year-olds are less likely to pull back their spending due to the economy. Being less likely to carry the financial burden of a mortgage or the responsibility of children, coupled with being happier with the current administration in Washington, young adults are significantly more likely to have a ‘live for today’ mentality when it comes to opening their wallets. Though it’s uncertain, these consumers remain more confident in the future health of the U.S. economy.”

Last week, against a backdrop of higher payroll taxes, disappointing jobs data and an unusually cold start to spring through much of the country, the U.S. Department of Commerce announced March retail sales grew a measly 1.6 percent over March 2012. And, what’s more, other economic indicators leave a lot to be desired. In addition to the latest sales results, a recent University of Michigan survey found that consumer confidence declined to 72.3 from 78.6, and the private sector added a less than stellar 88,000 jobs last month.

As we look ahead, I am still optimistic for chances of growth tied to stronger housing and business investment in the second half of the year, and as consumers get used to the changes in their paychecks and gain confidence as the key back to school and holiday seasons approach. While on paper, four years later, things appear better, we have some time before we can celebrate a return to “normalcy.” For an in-depth analysis of retail and the economy, NRF members can view our first installment of the NRF Monthly Economic Review here.

So, what is it?

This comprehensive annual survey is conducted and produced by Mercer and NRF, with results that help retailers answer critical questions about their HR practices. The survey provides actionable tools to manage compensation and benefits policies through comparing nearly 200 unique positions apples-to-apples against similar retailers by size, location, and merchandise and market categories.

Just how comprehensive can it be?

I have a printed copy taking up quite a bit of real estate in my office. The survey covers all areas of compensation and benefits by each individual position – down to the amount retailers are cost-sharing healthcare premiums. Ever wonder how employee store discounts compare across the industry? Yep, that’s in here too. And, all retail segments are included – from big-box retailers to department stores to convenience stores and specialty retailers.

How can retailers use the data?

The data provides firm numbers and statistics to answer these questions and more - helping companies form reliable HR policies. Here are some common questions – with answers found in the survey:

• What is the average pay for a store manager? In Texas? In Florida?
• How much of the cost for healthcare premiums is typical to pass onto employees?
• How do stores in higher or lower paying cities set their pay ranges?
• What turnover rate is commonly expected for salary and hourly employees?
• What is the standard number of vacation days to grant employees with 1, 5, & 10 years of service?

Will 2013 be the most successful survey yet?

Now is the time participate and discover how your data compares to the HR data your competitors have been using to stay competitive in the marketplace.

With your participation, this survey can hit record numbers and strengthen the value of the data received by retailers. Contributions can now be made for the 2013 Retail Compensation and Benefits Survey and we encourage all retailers to participate. Participating provides invaluable compensation data, insight into extensive HR and industry practices, and a look into benefit plan features for all merchandise categories.

NRF Information

• NRF’s 4-5-4 calendar was the most-read resource for the second straight month. This voluntary reporting guide ensures sales comparability between years by dividing the year into months based on a four-weeks/five-weeks/four-weeks format.
• Keeping frugality in mind, NRF’s annual Easter consumer survey found spending would be flat compared to 2012. Americans would spend an average of $145.13 on candy, apparel, food and more with total spending reaching an estimated $17.2 billion.
• St. Patrick’s Day falling on a Sunday wouldn’t stop more than 133 million to celebrate the day in style. The average celebrant said they would spend $35.27 on green attire, decor and holiday themed food and drink as total spending was expected to hit $4.7 billion, according to the survey.
• NRF’s 2013 tax returns survey was also among the most-read resources for the second consecutive month. Payroll tax hikes caused consumers to reconsider the spending habits – 45 percent indicated they will spend less overall, and another 35 percent would search for sales more often.
• Entering the end of the first quarter of 2013 readers were checking back in to NRF’s annual forecast. A subdued increase of 3.4 percent is projected for the year, 0.8 percent under the preliminary 4.2 percent growth seen in 2012. NRF’s digital division Shop.org expects online sales to grow between 9.0 and 12.0 percent for the year.

Top blog posts from Retail’s BIG Blog and Shop.org:

• Top six retail loss prevention trends for 2013
• The Walgreens path to omnichannel success
• Easter shoppers go thrifty in 2013
• Why the swipe fee “settlement” is far from settled
• Tracking the evolution of the modern retail organization

Top retail news stories in NRF SmartBrief:

• J.C. Penney changes pricing strategy on store brands
• Wal-Mart to open 115 more small-format outlets
• Lululemon to focus on supply management to ease growing pains
• Limited Brands adopts temporary name after sale of namesake chain
• Francesca’s to hit 400-store milestone

Love this infographic? Share it on your site using the embed code below.
<a href="http://blog.nrf.com/?p=17881/"><img src="http://b1d5ef2b997b30beaeea-54fe8a8caa40b033766a0d18c8a9e945.r89.cf1.rackcdn.com/NRFeastergraphic_1.jpg" alt="Easter shoppers go thrifty in 2013 – Infographic" title="Easter shoppers go thrifty in 2013 – Infographic" width="700" height="2100" </a>

In an effort to gauge how fluctuating gas prices have impacted consumers’ spending decisions, we went to our friends at BIGinsight, who sent along data that reveals that more people than not are affected by high prices at the pump. According to a Prosper Insights & Analytics survey, seven in 10 (71.9%) Americans say that fluctuating gas prices have impacted their spending in some way.

Specifically, slightly more than one in five (22.8%) have delayed a major purchase, such as a car, new TV or furniture, 37.7 percent have reduced how much they are dining out, 29.7 percent are spending less on clothing, and 19.5 percent are cutting back on what they spend on groceries.

Up close it’s obvious that consumers are taking the normal steps to reduce expenses – driving less, taking fewer shopping trips and shopping closer to home. But a closer look also shows that many Americans are considering coupons more often and even buying more generic or store brand products to compensate.

While February retail sales were up slightly, only time will tell if consumers can continue to pay and do more with less.

NRF Information:

• NRF’s 4-5-4 calendar was February’s most-read resource. This voluntary reporting guide ensures sales comparability between years by dividing the year into months based on a four-weeks/five-weeks/four-weeks format.
• Even as one of the biggest gift-giving holidays, this year’s Valentine’s Day consumer survey showed Americans were still spending cautiously. Over one-quarter of those celebrating planned to shower loved ones with gifts, which was a new 10-year high. One of the more notable stats was the difference in average spend between men and women. Men surveyed said they expected to spend an average of $175 on jewelry, flowers, and more for the holiday, while their counterparts would spend approximately $88 on Valentine’s Day gifts.
• Shortly after Valentine’s Day came NRF’s annual tax returns survey. The data showed that due to payroll tax changes, nearly three out of every four Americans were adjusting their spending plans. A smaller paycheck has prompted consumers to rethink their household budgets, with 45 percent indicating they will spend less overall and another 35 percent searching for sales more often.
• RAMA‘s annual Super Bowl consumer survey hit a nine-year record as more than 179 million people planned to watch the big game. For those celebrating, the average game watcher expected to spend $68 on new televisions for viewing parties, snacks, décor, and more.
• NRF’s digitally enhanced Annual Report is a month-by-month look at NRF events, policy milestones and new initiatives within NRF’s communities. Check out what happened each month at NRF last year and share you favorite stat or story.

Top blog posts from Retail’s BIG Blog and Shop.org:

• What Fortune’s “Best Retailers to Work For” have in common
• State of the Union proposals carry wide impact for retail industry
• Retail marketing veteran talks trends, surprises and the very best of Super Bowl XLVII commercials
• The Walgreens path to omnichannel success
• The big numbers behind Retail’s BIG Show 2013

Top retail news stories in NRF SmartBrief:

• Macy’s sees strong sales growth with omnichannel approach
• Office Depot, OfficeMax to merge in $1.17 billion deal
• Saks switches to omnichannel management
• How State of the Union proposals will affect retailers
• Nordstrom to spend $3.7 billion on growth plan