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- For all the talk of stabilization and an improved outlook for the year ahead, we continue to see layoff announcements from major retailers: Walmart announced it will cut 11,200 jobs at Sam’s Club locations as it outsources in-store product demonstration jobs; Home Depot is laying off about 1,000 people as it closes 3 under-performing pilot locations; Macy’s will be eliminating 1,500 store-level positions.
- Demographic tidbits: Sharp increase in affluent online shoppers during holidays, don’t count on baby boomers to pull us out of this recession - consumer spending patterns are already changing, women cut back their spending in 2009 more than men, survey says.
- Consumer confidence continues to improve as future prospects for the economy look brighter, but consumers still describe their own personal finances as dismal – consumer spending is expected to lag previous post-recession recovery periods: The Conference Board Consumer Confidence Index Increases Moderately, Reuters/University of Michigan Consumer Sentiment Index Hits Highest Level in Two Years.
- While consumer optimism is on the rise, will anyone pay full price anymore? As a result of retailers’ heavy discounting during harsh economic times, consumers have become increasingly adjusted to shopping on sale, a trend that will continue to pose a challenge to retailers trying to recover.
- Retailers are increasingly viewing filing for bankruptcy as the beginning of the end, and are increasingly wary that they could turn out to be the next Circuit City. “Quick bankruptcies are a good thing, but they’re not necessarily good for a retailer,” Why retailers are avoiding bankruptcy (or lessons from Circuit City)
- Retailers try new survival strategies for 2010: The recession pushed shoppers to pick necessities over discretionary items, discounts over luxury. But retailers hope to shift such behavioral changes further in coming months, affecting what consumers will buy, pay and experience at stores.
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