Roger Saunders

NRF: Retailers and Suppliers Upbeat About 2012

January 18, 2012

FROM RETAILWIRE:
Everything is good in retail land. At least that was the consensus of attendees RetailWire spoke with at the National Retail Federation's (NRF) Big Show over the past couple of days. How confident are you about the retail industry's prospects for 2012? What internal and external factors do you think will be most important in retail performance over the course of the year?      [more...]

The December BIGinsight Consumer Intentions & Actions (CIA) Survey offers some revealing comparisons to prior years. In 2012, retailers would be wise to watch consumer payment methods by various product categories. With necessity items, consumers have stepped back to credit and debit -- a promising opportunity. With discretionary purchases, cash is up -- some continued challenges for certain restaurateurs?

They also will want to look closely at the segmentation of their audiences. Boomers remain more cautious in terms of consumer confidence and spending patterns (plans to spend MORE, the SAME, or LESS in the next 90 Days). Yet 18-34 year olds are opening up the wallet and purses a bit faster. And, the 35 -54 year olds have some buying power that positions them to spend time in retailers' stores.

View the BIG ticket purchases, as well, even if you don't sell those particular items, as they show patterns that consumers are following. Technology spend should be solid for all age brackets. Furniture sales are likely to improve among 35 - 54 year olds, but what is marketed to adults on the other sides of this bracket will have to be different merchandise/promotion.

Jewelry will be OK, but at more modest prices, as the boomers aren't going to be big buyers. Consumers will invest in their homes at a slightly higher rate, which spells a solid 2012 for home improvement chains. And, the travel category will be showing improvement, so tie in with American's wanderlust.

2012 will be a better year, but retailers will have to work hard to spot the niches. One simple plan-o-gram isn't going to cut it.