Study: Consumers still spending less

To get the most out of this strange economic year in the US, marketers are going to have to beef up their strategy. That may as well be the tagline of a recent Deloitte study, which indicates that consumers continue to spend less even as marketers are hoping the back-to-school rush will brighten their bottom lines.

by Kristina Knight

The study finds that consumers are spending less and are even changing how and where they shop because of the tough economic climate.

"…Consumers will likely stick to the basics this fall, and parents may be saying "no" more often as they head to the register," said Stacy Janiak, Deloitte's US Retail Leader. "Retailers should focus on areas that will contribute to profitable growth, such as adapting their merchandising and promotional activities to increase loyalty among existing customers and attract new customers."

Roughly 80% of parents are shopping at discount department stores and 37% are shopping a dollar stores this fall. Still, about 32% will shop at an office supply store, which is good news for electronics brands.

The changes that Janiak suggests for brick-and-mortar retailers can be used by etailers, as well. Offering coupons or marketing your etailing hub as a "best price" destination could enhance the profile of some stores. The key is to make sure you can back up those ads. Nothing is worse for a brand than bad or misleading advertising, so if your marketing strategy includes branding the store as a low price/best price destination, make sure the store actually delivers on that promise.