Are You Recovery Ready?

admin — Fri, 22 Apr 2011 12:51:45 +0000

All signs are pointing to a global economic recovery, according to Deloitte Research. It forecasts an almost synchronous recovery in several economies around the world, including the U.S. for 2011. Although growth signs are minimal, forecasts are still positive. Consumers are spending again after the worst recession since the 1930’s. However, sales have been sluggish with moderate gain. Many consumers are still concerned and have cut their spending habits.

One would think with all the cut backs, that there would be a sense of lowered expectations from consumers. On the contrary, consumers have used the economic downturn to their advantage. Consumers have become more discerning on price competition and also customer service and value. In this competitive marketplace consumers are simply not tolerating poor service or poor value any longer. Consumer expectations are extremely high today. Shopper’s today are rewarding retailers with their loyalty and their hard earned dollars. They are no longer as tolerant with inferior products, too many irrelevant choices and too much store clutter.

Smart retailers are responding to this trend by offering relevant choices and reducing the store clutter. Some chains like Wal-Mart and Walgreen’s are reducing SKU’s by at least 15%. (Chain Store Age.) Their strategy is “less is more.” The strategy does seem to be working for them and lifting overall sales. These retailers have used the economic downturn to their advantage, restructuring and re-shifting their focus in the downswing so they will be well positioned for the economic recovery.

Retailers should have been preparing for the recovery in the downswing and essentially “cleaning house” when possible. Now, it appears that the recovery is in site and there is a glimmer of hope for the coming year.

Hopefully, retailers have not been resting in the down economy. If they did their homework, they should be well prepared for the recovery.

Social Networking? What?
The Year that Social Networking went Mainstream

A new mean’s of communication that various companies are using to boost their business. Smart businesses are using this method to get their message across to millions. Ford Motor Co. recently targeted the gen y group by giving a free 6-month ride in their new Fiesta. In return the gen y’ers post blogs on Twitter to discuss their findings. The ad has been extremely successful for Ford.

Fact: Facebook now has over 350 million users.

Fact: Twitter’s September traffic increased 1170% compared to year earlier same month.

Black Friday

Fact: There were approximately 195 million shoppers, an increase from 172 million shoppers last year.

Fact: The National Retail Federation reported sales of $41.2 billion up from $41 billion last year.

blu sol design, llc

Are You Recovery Ready?