Re-Inventing Retail

From the Co-Founders of The Retail Owners Institute.
Tips | Tactics | Insights on the Business of Retailing.

Hmm. Your Stores in Red States or Blue States? Bookmark

Specify Alternate Text

A new consumer confidence study based on monthly interviews with 9,000 respondents (versus the 500 or so polled in the University of Michigan consumer sentiment study) finds that the the key difference/predictor in people's attitude about the economy (and shopping!) is their political views. 

That's right. What seems to matter more today may not be whether you're in a mall or strip center. When it comes to location, apparently what really matters is, Red State or Blue State?

Here's what this study revealed:

"According to Democrats, the economy is in serious trouble; according to Republicans, the future is looking rosy."

"These opinions all have real consequences. Our financial expectations affect how we save and spend, and all these individual choices, in turn, affect the trajectory of the economy at large." 

"On a scale of 0 to 100, where 0 represents complete pessimism and 100 represents complete optimism, left-leaning Americans rate the economy in the low 40s on average, while right-leaning Americans rate it in the mid-70s."

And then this finding, which gets right to the impact on retail sales:

"Right now, for instance, 46 percent of right-leaning Americans say it’s a good time to make major household purchases — but only 22 percent of left-leaning Americans agree."

Ahh yes. This all makes sense. 

We long have held that the true leading indicator of retail sales is consumer confidence.

And in today's world, according to this study, more than ever before, consumer confidence – the consumer's "state of mind" – is closely linked to political allegiances. (A "Red State of Mind?" Or "Blue State of Mind?")

This could explain a lot about sales trends, whether you have 1 store or 100 stores.

Consider where your stores are located: Red States or Counties? Blue States or Counties?

Then, take another look at your sales trends. (With multiple stores, just sort them into two groups – Red or Blue – and total the performance for each of those groups.)

Best of all, this new perspective for you savvy merchants may enable you to sharpen your competitive edge even more. 

Knowledge is power; more knowledge about your customers is the most powerful of all.

Comments are closed.

Showing 0 Comment

About The Co-Founders

Pat Johnson and Dick Outcalt, The Co-Founders of The Retail Owners Institute®, have been called "The Zen masters of retail finance!"

Since 1999, they have been assembling  their proprietary content into a unique self-help website. The Retail Owners Institute is an unmatched resource that assists retailers worldwide with basic financial training, assistance and easy-to-use tools.

Their engaging and empowering how-to resources about the financial levers in retailing are informative, fun(!), and retailer-friendly. Their promise: "Everyone will 'get it'!"

Pat and Dick are recognized experts in strategic retailing. Working only as a team – Outcalt & Johnson: Retail Strategists, LLC – they have been consulting, publishing, and speaking professionally throughout North America since 1990.

They focus exclusively on retail, or wherever retail is involved. They work with CEOs, CFOs, boards and owners of retail operations, as well as manufacturers or wholesalers expanding into retail. And they also are Retail Turnaround Experts.

Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"