Consumers gearing up for back to School Purchases August 20, 2009

Photo by pOpsicle

There have been some interesting trends in consumer shopping habits which may help retailers prepare for the coming back to school and holiday shopping.

Scarborough Research reports that consumers are now opting-in to receive coupons via text messaging and e-mail
marketing because of the increase in the use of cell phones and other personal communication devices. The typical shopper is an affluent, highly educated female between the ages of 18-24.

The National Retail Federation reports that shoppers are listing coupons as the motivating force for back to school shopping.

Perhaps this will have an effect on the economy this year. Since the only reason people buy is “value,” shoppers may find value in the coupons they receive.

Retailers Troubled over CIT Bank Financial Woes July 28, 2009

Photo by NSP Images

The apparel and furniture manufacturers are the two largest groups who will be directly affected if CIT does not recover from its economic woes. They are concerned that it may hurt their Christmas sales, as now is the time of the year when they make plans for Christmas profits. The leaders of the Retail Industry Leaders Association and the National Retail Federation are concerned and have written letters to Treasury Secretary Timothy Geithner asking his department to reconsider its decision not to provide support to CIT.

Small and medium business owners may have to explore other avenues of raising cash. They have traditionally relied on factoring, which involves selling their invoices for cash. CIT has provided the capital to purchase the invoices in the past.