by Any retailer planning on staying in the game realizes that future sales can hold the key to future solvency.
According to a new CNBC survey, consumer debt, and a lack of savings, could be two key roadblocks for retailers down the line.
The survey, which polled more than 6,600 U.S. adults last month, found that a startling number of Americans — 40% of those polled — said they are behind on retirement savings because of debt and insufficient income.
The study also concluded that 37% of baby boomers between the ages of 60 and 78 acknowledged falling behind, compared with 26% of Gen Xers, 13% of millennials and only 5% of Gen Zers over 18.
Some 21% of the retirees polled admitted to having no retirement savings.
Another survey, also completed last month, found that some two-thirds of Americans report living paycheck to paycheck, according to a recent MarketWatch Guides survey.
MarketWatch is a website that provides financial information, business news, analysis and stock market data. It is a subsidiary of Dow Jones & Co., a property of News Corp, along with The Wall Street Journal and Barron’s.
Digging into the survey results, MarketWatch found that:
Women are more likely than men to report struggling between paydays, and a surprisingly high percentage of top earners also say they fall into this category.
+ 72% of females who responded to the survey feel like they’re living paycheck to paycheck, compared to nearly 60% of males.
+ 48% of people earning $100,000 or more annually and 36% earning $200,000 or more reported living paycheck to paycheck.
+ Inflation, high cost of living and a lack of income are the most commonly cited reasons for financial struggles.
With consumers struggling to make ends meet, what can retailers — especially those selling higher-ticket goods like furniture, take to drive sales during times like these?
The first step to waking up sales in a sleepy economy involves a laser-focused look at your business.
You should be able to pinpoint which products are working, which promotions score, how much of your sales are done in-store versus online, which price points are most robust and which methods of payments and or financing options your customers prefer.
Once you have those answers, it will probably be time to adjust your product mix and pricing and possibly even tweak your list of vendors.
With statistics indicating that even affluent Americans are belt-tightening, it may be time to alter your product offerings to have a greater appeal to cash-strapped consumers.
However, while possibly shining a brighter spotlight on more affordable goods, continue to offer higher-end furniture for those who can afford it.
Also, when business gets old, it may be the perfect time to add new products, new lines and creative new promotions to your mix. With customer loyalty a key ingredient in any retailer’s recipe for success, now may be the perfect time to amp up discounts and special offers to repeat shoppers.
With the statistics continuing to confirm that shoppers begin the process online (81% of retail shoppers conduct online research before buying, according to GE Capital Retail Bank), having a compelling online presence is non-negotiable.
Last, but by no means least, the devil is in the details. For retailers, the devil is the customer experience.
According to a recent Consumer Insights study from Google, 73% of consumers say they are willing to continue buying from companies that increase their prices if they feel valued as customers.
It’s no secret that times are not only tough, but that they are likely to remain so for some time.
So, it may be the perfect time to recall the old chestnut that advises when the times get tough, the tough get going.
