At a conference in Chicago, the research and consulting group revealed findings from its latest [image-nocss] report on consumer trends, which polled 4,000 shoppers on their attitudes and behaviors as the economy improves.Though numerous macroeconomic factors are in play, economists at Retail Forward predicted a gradual recovery from the current recession potentially starting as early as the latter half of 2010. In that light, Huff noted several potential behavioral trends to expect post recession: Mindful choices. Shoppers will be wiser regarding price and quality, having been able to use the Internet as a resource to find the best value. Working for deals. Coupon use and buying in bulk are trends that will continue as the economy improves, as will using the Internet and taking the time to find bargains. Sustainability. Fewer will pay more for products linked to environmental sustainability, but they will consider it a value-add. Changing values. Socially, people will consider "wasteful" spending as a stigma, while "thoughtful" spending will become the acceptable norm. For instance, a trend toward "good enough" vs. "highest quality" is emerging. Integrated into the idea of behavior changes is the factor of life stages. According to Huff, Baby Boomers will continue to have an important affect on the economy. They still make up a large part of the nation's population and are more likely to stick to the minimalist buying patterns they have adopted during the current recession.
So-called Generation X, the population now in the 26-45 year-old range, is entering peak-earning times. Its members are buying homes and "feathering their nests." This generation was the last to cut back on spending and is expected to be the first ones to increase spending as the recession subsides.
And while Gen Y, the population following the Gen X demographic, is as large as the Baby Boomers in size, its predicted selective spending patterns will only fuel a modest rebound.Providing some advice to retailers preparing for that post-recession period, Huff suggested a few tips: Adjust targets and consider an appeal to the Gen-X and Gen-Y demographics. Build a case for products and services, creating a "must have" perception. Close the deal by ultimately making the end product or service worth the time and money. Frank Padillo, senior economist and vice president of Retail Forward, said the nation is not out of the woods by any means, noting how holiday sales this year are expected to remain flat but will still be among the worst in 40 years. Baby Boomers are expected to retain their newly acquired thrift and will focus on recouping the wealth they've lost in the last year. And the recent influx of government cash into the economy puts a burden on Washington to transition the country back to economic norms.
Citing dropping unemployment claims, gross-domestic product (GDP) trends and other indicators, growth should return to near pre-recession percentages in 2011. How soon will depend on when housing prices stabilize, if speculation on commodities returns or when consumer confidence begins to build.
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