For retailers, the current credit crisis means the majority of customers will be putting a much-reduced spending limit on their purchases. As a result, retailers will see a change in consumers’ demands.
The middle class will be working to keep what they have. Even the wealthy will feel poorer. As in every other downturn, luxury items will be hit first, followed by the don’t-need-it-now items, which include everything from jewelry to replacement appliances.
This will be a more practical holiday season and gifts will reflect this. Survey what you have for sale and adjust your leaders, store-determined end caps, and advertising to reflect that your customers are going to make more financially conservative decisions, no matter what their economic level.
Marilyn J. Holt, CMC
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.