Cut Backs Due to Economic Downturn

Today’s shaky economy is causing financial stress on consumers. As prices rise, people are forced to lower their standard of living to meet ends meet. Even affluent consumers (household income greater than $100,000) are cutting back as the economy continues to look bleak. However, according to the latest study by GfK Custom Research, bright spots do exist. Retail discount stores provide unparalleled value for consumers, independently owned neighborhood stores appeal to older customers, and online shopping continues to provide an ideal shopping environment for affluent consumers.
In order to attract customers, retailers must foster a positive shopping experience by making it relevant to their customers. Everyone wants good deals and service, but

  • Younger demographic wants shopping to be fun
  • Older demographic wants American made products
  • Affluent demographic prefer shopping online

Other relevant statistics on today’s retail market include:

  • 2/3 of Americans say their incomes lag behind their living costs
  • 57% think more about what they are buying today than they did a year ago
  • 42% are willing to spend more for American made products
  • 76% say they get excited when they get a good deal
  • 73% of Americans 13 and over strongly/somewhat agree that they always try to buy things on sale. This percentage was higher than any other country surveyed.



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