Following a conversation with a large high street retailer today on behalf of my research agency, we discussed the need for them to get a feel for how they can promote consumers to spend in a declining retail slump.
You only need to look at retailers like the struggling Dixons for example, to realise that spending on non-essential items has dropped dramatically.
Across the retail industry as a whole, the British Retail Consortium says like for like sales dropped 3.5% in March compared to last year, the steepest fall since April 2005.
Total sales, including new stores and space, slumped 1.9%, the worst drop recorded since the BRC started collecting data in 1995.
So what does this mean for our clients and generating new business? Well this is exactly where research comes in. Relatively new research methodologies such as behavioural economics which is now being embraced by marketing, communications and research decision makers, looking at human behaviour rather than attitudes, beliefs and opinions.
Attitudes lead to intention that triggers behaviour, and this in turn can be changed through strategic marketing campaigns. See this link on behavioural economics to get a better feel for how this works.
A gloomy time for retailers, but possibly a good time for our research agencies to win new business by stepping in to develop strong marketing strategies, and help British retailers drive sales where others are failing.