Have you thought about how your buying habits changed from 2007 to the 2008-2009 time frame, when we sunk into economic depression?
At a time where we face high inflation and a weak wage growth, Britons have cut out or reduced the least important (least valuable) purchases and opted to pay higher prices for what’s truly important to them.
Do you realise this information allows retailers to distinguish the ‘must-have’ from the ‘nice-to-have’ products and services. Armed with that knowledge retailers can anticipate and adjust their marketing, inventory levels and staffing which are likely to be focused on what consumers continue to buy most frequently during challenging conditions.
When the economy is stable or growing, it would be feasible for retailers and businesses to shift their marketing to highlight those ‘luxury’ purchases. Why? Because buyers pay more for what they want than what they need. They will enjoy significantly higher margins on the nice-to-have over the ‘essentials.’
Pay attention to what your customers are buying during difficult times and you’ll quickly discover what’s ‘essential’ vs. what’s ‘nice-to-have.’ Then adjust your operations accordingly.