PUBLICIS INDIANAPOLIS BLOG

The retail market in the current recession continues to drop. Why? For starters, numerous viable businesses have closed, leaving fellow companies desperate to stay afloat among heavy competition for consumers’ decreasing disposable income. Consumers are tightening their budgets due to increased food and gas costs, and their decreasing credit is also a major factor to the decline in spending.

Most operating businesses increase their desirability to consumers with coupons, deals, low interest rates and extended return policies. These tried and true strategies may seem old fashioned and obsolete, but they are in fact signaling an upturn in an otherwise bleak situation.

According to an article in The Associated Press on June 11, “retail sales increased by 0.5 percent last month….It was the largest increase since sales surged by 1.7 percent in January following six straight declines.”

Although a 0.5 percent increase may not feel tangible to consumer, it is much more hopeful than a decline. What will the ripples bring? It starts with the company and ends with the consumer. Companies are charged with renewing their creativity in advertising and storefront space utilization. The consumer will react and adapt. The question is: how? That conversation will continue…