Retailers are Seeing Higher Priced Items Go Again
In a sign that this huge recession, the biggest in our lifetime, may be coming to a (slow) end, apparently consumers are starting to buy the higher priced items that are available again. High end stores are starting to see their patrons buy the higher priced items rather than the very lowest price point, and they’re also seeing the traffic through their stores pick back up in general, since people tend to avoid any high priced stores when there is a recession in a first place.
Although there are still perceived threats to the economic recovery’s stability, like the failing Euro and the problems with Greek debt which economists fear will spread to other European nations, this pickup in US consumerism is definitely a good thing for us here in America. Who knows, where as the US was the one to start the dominos falling starting in 2007 and culminating a huge crash in 2008, we may now be the first ones to truly recover and to lead the way out of the global conundrum that we actually may have started, becoming a sort of safe haven for those in other countries who want to invest. I could happen – it could!
Luxury stores and items are now starting to see a bounce back as consumers open their wallets to more frivolous items, and that is exactly what we need to see happen to have a sustainable recovery. Economists have said time and time again that the recovery has to be backed by the more wealthy people beginning to spend their money again on these un-necessities, and that seems to be what it happening.
You may see retailers start to trend away from their previous advertising campaigns that were made for the recession, which focused almost solely on price. Now, they will focus more on value and their competitive edges over other retailers in the same market, but not the dollar advantage, more intangible advantages like selection, associate experience, layout and convenience, and things like that.
Retailers are cautious about this new upswing in higher priced inventory going though, because it really is much too early in the game to call an end to the downturn in these items selling since it’s only been a few months that it’s actually been occurring. However, we’ll still take any good news and run with it. This is a piece of good news, as is the returning strength of the American dollar, and we’ll take that too, but even that signals the possibility of inflation. Don’t you just love economics? It’s always something….
