While the stock market is recovering from the economic crisis in 2008, this does not mean it is booming like it was before. It is growing at a slow steady rate. What is also showing this that Wall Street and Main Street are not connected. Main street, where the consumers are, still have fear for job loss. With the housing market decline, many house prices are still going down in today's economy.
Researchers are also hoping that this holiday season will give some consumers a bit more confidence and realize that the market is on a turn around. The Dow Jones Industrial Average is up 7.1% this year. This means that many people with money invested in the stock market are starting to make some of the money they lose back. Hopefully that is something to be confident about.
So it is really up to the retailers this holiday season if they want to get consumers spending. Good deals and having the best products are going to bring them into the stores so that is one place to begin. And hopefully with the future looking a little more positive, consumers will gain more confidence and begin spending again.
By: Ariel Levin
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/26/AR2010102602234.html
It is true that retailers' success depends on how well they promote themselves, but that is going to require much more work than ever before. Buyers are still hesitant and they have learned to be more frugal with their spending. This is why retailers need to work more on market segmentation and what type of buyers they would like to target. Consumers are going to need to see real value in the product before they buy it. The holidays are a good time for retailers to go from the red to the black, and they are a good time to catch consumers in "purchase mode." However, it is also a time where retailer effort is key.
ReplyDeleteCatherine Reeves