Financial Crisis Is Not The Only Blame for Declining Retail. by Milota Sidorova

American retail sales went down 1.2 percent on September. It has almost doubled the expectations. And one who might be pointing his eye on Wall Street surely knows how disasterous this news might be.

And it was. Panic over Wall Street sent Dow(n) Jones 733 points or more than 7 percent yesterday. All the major indexes were dropping as well, at least 7 percent.
Consumer spendings are the fuel engine or two thirds of U.S. economic activity. And while the banking sector may be recovering, the rest of the economy stays underwater. That’s what every politician says. Moreover such emotional turbulence may be quite natural after such big loss in the last week. U.S. market papers lost $2.4 trillion during 8 trading days. Wednesday extended the black bill plus $1.1 trillion.

Bad news – however, not all the blame for declining spendings belongs to credit crisis.
People still need goods, they still need to buy and they want to buy even in such though times.
According NPD Group analyst Marshal Cohen, engagement with consumer at all levels is the key to success today. You have to persuade the mass, you are wanted and desired. You have to be optimistic and not thinking black, attracting to the negative aspects of the economy.
Give them a reason to buy! Cohen also said, that way out of this bleak mud may be easier for companies like Apple, though last numbers don’t think so. Apple has one of the best developed merchandize strategies in the world. Starting with great desing, ordinary presentations with CEO Steve Jobs, who instead of business look prefers his black T-shirt and blue jeans. Advertising and marketing may ease your loss.

According several sources, on-line shopping has increased last months. The reason is, while desperate consumers stay at their homes, refusing the ordinary visits of supermarket, they still think of the best compromise between what do they exactly need, the price and the quality. While reluctant to other types of advertisments, they are falling, they are overwhelmed by the online catalogues etc.

Companies should bet on good strategies and discount systems, however, Cohen accused ‘gift cards’, because on one side it is an opportunity to attract the consumer and it guarantee early yield, however, on the other side it makes customer passive, not offensively thinking of what he might be needing. Literally, consumer is not walking among registers seeking, thinking and doubting.
So, there’s not doubt the opportunities may be found.



related story: http://news.yahoo.com/s/ap/20081015/ap_on_bi_st_ma_re/wall_street;_ylt=AoQbKpvAuCbMrFPjVh1wYOus0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova