STORES Magazine - February 2009 - (Page 27)

and the data indicates that those 55 and older are cutting back more than average. The figures suggest that, while Boomers will continue to support charitable causes, they may not be in a position to dig as deeply as they have in the past. Expect cleaning services and landscaping to also come under greater scrutiny as consumers determine what they can and cannot live without. The BIGresearch study finds that 90 percent of all adults consider a maid or cleaning service to be expendable; 86 percent say they can live without lawn services. Interestingly, among those who are already trimming the budget of non-essentials, keeping the inside of the home spic and span is slightly more important than maintaining outward appearances. Twenty-six percent have reined in spending on cleaning services; 29 percent have cut landscaping services. While satellite radios and services were all the rage just three GENERATION GAP OR NOT? Top 5 Untouchable Items among … 18- to 34-year-olds Internet service Cell phone service (basic) Cable/satellite TV (basic) Cell phone service (text, picture, video) Fast-food restaurant Shoppers 55 and older Internet service Cable/satellite TV (basic) Cell phone service (basic) Hair cut/color Discount shopping for apparel Source: BIGresearch, American Pulse Survey, December 2008 years ago, consumers seem perfectly willing to part with Howard 100 News, Elvis Radio and Sirius Blitz. Regardless of age or income, the survey finds that nine in 10 consumers consider satellite radio to be expendable. It’s interesting to note, however, that among shoppers who say they are already cutting back, only 31 percent say they’ve pulled the plug on satellite radio. The 18- to 34-yearold crowd seems most reluctant to revert to old-time radio; only 19 percent of those who are cutting back have canceled their subscriptions. Similarly, the luxury handbag tops the list of expendable items, yet only 31 percent of those who are cutting back indicate that they’ve zipped the purse shut on buying this item. Here again, younger shoppers are more likely to continue plunking down the cash or credit card. WWW.STORES.ORG Big gulp of reality ncertainty about the economy and a lack of confidence about the short-term future is compelling consumers to make changes to their behavior. Whether or not the pull-back in consumer spending is bad for the economy remains a point of contention. Some argue that as Americans embrace a new thriftiness, make smarter buying decisions and put more money into savings, the pendulum will slowly swing away from massive debt and toward an improved standard of living. Others contend that the only way to jump-start a flagging economy is to pump more dollars into it; they claim that increased savings and decreased spending can only exacerbate economic woes. If the new administration’s stimulus plan includes a tax reduction, as promised, consumers may be more willing to spend. But unless there are big improvements in the labor market to accompany a stimulus plan, recession may linger for of both age the better part of groups 2009. consider basic Truth be told, no cell phone one really knows exservice actly how consumers untouchable will react until they do. The challenge for retailers continues to be finding ways to ignite interest in something new that sparks a purchase. Numerous restaurants and day spas tried a new approach during the past holiday season by offering a premium gift card to those who purchased a gift card at full value. It was a way to spark future traffic and lift sales, especially since people usually enjoy restaurants and spas in the company of friends. Starbucks recently debuted a new line of teas and is marketing them as the perfect afternoon respite. Sure, some consumers have chosen to forgo their daily cup of gourmet coffee, but continuing to innovate via the introduction of new hot drinks and breakfast offerings suggests that Starbucks executives have an agenda of progress and innovation that hasn’t stalled despite the economy. They know their customer and they’re working to remain relevant, now and in StORES the future. U 60% STORES / FEBRUARY 2009 27 http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - February 2009

STORES Magazine - February 2009 Contents Executive Editor's Page President's Page Are You a Pusher or a Puller? What Shoppers Think Online Retail Satisfaction 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story - Something’s Got to Give First Look Concept2Watch Online Partners Merchandising Sustainability Inventory Systems Drug Store Systems Business Intelligence Inventory Managment Online Marketing Supply Chain - Better Data, Better Decisions Returns Management - Identifying Fraud Data Security - Securing Intimate Data Anti-Shoplifting - Mall of Shame? Risk Management - Securing Consumer Confidence Loeb Retail letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar End Cap

STORES Magazine - February 2009

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