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Retail Viewpoint - Will downturn ultimately blow an ill wind to all?
Archived article dated Monday October 27th 2008
The decline in consumer spending is without doubt leading more shoppers to give the discount supermarkets a go but even they could ultimately suffer to some extent during a downturn because those people suffering the greatest hardship might have to reduce their spending on the most essential of essentials: food.
by Glynn Davis
This is the case in the US where a worrying trend is being experienced at Wal-Mart, with customers stretching themselves just to put food on the table. In a survey the company found that 80 per cent of its customers now cite personal financial security as their number one concern.There has also been a significant drop over recent quarters in credit card usage as the most vulnerable to the downturn are finding their cards maxed out. This situation has led to a significant increase in demand for Wal-Mart's own-label products with growth running at 2.5 times that of the national brands over recent months.
The downturn, recession, or whatever you want to call it, ultimately throws into question the 'it's an ill wind that blows nobody any good' idiom.
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