'New normal' not going away
Ray Allegrezza, Editor in Chief -- Furniture Today, March 8, 2010
America is no stranger to recessions. Believe it or not, this country has weathered 47 of them since 1790, including 14 since the Great Depression.
Even so, many observers agree that this recession has been much more than just the latest dip in the nation's business cycle.
Instead, scores of economic observers suggest that this one has been instrumental in helping to set the stage for a global restructuring.
Closer to home, it clearly raised the curtain on a drama called the “New Normal” — a one-act play that portrays consumers as blindfolded strangers groping to find their way in an unfamiliar room.
While I admit that comparison is a bit dramatic, it is based on a number of studies that clearly and strongly suggest a new breed of shopper.
Not that long ago, ABC News did a series of reports about this phenomenon that was based on the network's survey of Americans. The results of that study mirrored the findings of similar polls, including one that we conducted with HGTV last year.
What ABC found was that employment was a top concern among consumers. Those who were unemployed worried that they might not find work in this economy. And even those who were gainfully employed at the time of the survey expressed concern about the stability of their jobs.
Americans also told ABC they were worried about their nest eggs — or the sudden lack of them. As a result, they reported saving more and spending less, and also said they were less willing to take on more debt, especially on their credit cards.
Furniture/Today heard similar things from the 8,550 consumers who responded to the survey we fielded late last year with HGTV. Specifically, 86% of those who responded said they were making major purchases for items including furniture less often.
Moreover, 58% said they were clipping coupons, 42% said they were shopping second-hand stores and 65% said they were focusing their shopping at discount department stores.
Clearly, this recession has changed the way she shops.
My hope is that you've made adjustments to your business in order to thrive in the new normal.
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Today’s topic: Distribution
Mar 15, 2010 -
Shopping study yields surprises
Feb 23, 2012 -
High-End Retailers Need New Game Plan to Survive
Sep 29, 2011 -
Consumers tell it all
Mar 30, 2008 -
Ready for the new 'normal'?
Dec 21, 2009
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