Customer Trends During The Credit Crunch
Everyone is aware that the world is in the grips of a global recession and with retail sector giants like Woolworths in deep trouble, it is no wonder that everyone is concerned. The future prospects are not good for many retail businesses as they are in a situation where the banks that were once happy to lend them money have turned round and said no. This is because retail business banking customers are now considered to be high risk, which can cause huge issues for small shops as they rely on the banks for their cash flow. This means that most of these companies have their cash tied up in stock and this means they either have to drop their prices in order to sell the stock quickly or cancel undelivered orders from their suppliers.
A A way to fix the current global financial crisis is to try and get consumers to buy more and this is why many businesses are now trying to come up with a business growth plan in order to survive recession and make their business stronger for the future. Lots of companies are now selling off a lot of their products at reduced rates so that they can free up some of their funds in order to pay off important bills and to keep their creditors happy. The problem with this is that many consumers will now wait until prices have come right down, rather than spending money now when the businesses need it. This means that shoppers tend to only spend money on products that they believe that they have to have.
The signs are showing that consumers are becoming more sensible with their money. A recent poll said that Manchester restaurants and takeaways were still performing well and that the reason for this was because consumers are still ordering takeaway deliveries but were going for the less expensive option. Instead of ordering food from big household names such as Dominos they are opting to go to local Manchester restaurants because these tend to be around 20% cheaper.
It seems that shoppers are still happy to make purchases but they will only spend money on things that they can rationalise, this will mean that they will spend money on bills, food and health products as well as gifts at certain times of year. Shoppers will also still spend their cash on special occasions such as weddings because these are often a once in a lifetime experience and no man is going to deny his daughter the castle wedding she has always dreamed of. Consumers are also prepared to spend money on presents for weddings especially when it comes to jewellery such as mens and ladies cufflinks.
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