by Todd Pheifer

Created on: December 28, 2008   Last Updated: January 06, 2009

When the economy is not doing well, retailers start to worry because consumers may begin to become more interested in saving money than purchasing additional merchandise. This means that stores and other business have to come up with more creative ways to interest customers in their products. Some stores work hard to convince people that difficulties in the economy don't have to prevent them from buying new items. Here are a few ways that retailers can overcome the post-holiday rut.

Discounts

One way for retailers to convince customers to buy merchandise is to put large discounts on certain items. The reason that this is often effective is that many people do not pay attention to prices throughout the year. When people see a "50% off" or a "75% off" sign, they often feel it is a good deal, even if the original retail price was rather high. In addition, deep discounts can draw customers into the store and interest them in other products.

Coupons

In addition to discounts, people like coupons. Sometimes retailers can inspire consumers to buy merchandise by mailing or emailing discount coupons. Again, the coupon doesn't always have to be a high percentage. People like to feel that they are getting a "good deal" and a coupon helps them achieve that sense. Also, a coupon may convince someone to buy an item that they wouldn't normally acquire.

Food and free giveaways

Despite the gravity of a slumping economy, some people still like simple things. Oftentimes these things include free giveaways, which don't have to be valuable. They just have to be free. Sometimes having a limited number of these giveaways will entice people to come to the store. In addition, people like free food and beverages. Again, they don't have to be complex consumables. Rather, they just have to be free and readily available.

Window displays

Despite our technologically-advanced society, people still like to go to the mall and "window shop." Therefore, an effective window display is an important component for drawing in shoppers. The display should include featured items, discounts, sales, and a balance of color and style.

Payment terms

While it is not recommended for consumers to accumulate debt, retailers can entice people to acquire merchandise if they have flexible payment terms. For example, they can give people the opportunity to pay for items in the near (or somewhat distant) future. Sometimes this is done with or without interest and payments. Again, retailers are attempting to convince consumers that it is fine for them to purchase items, even if they really can't afford them at the moment.

New products

Retailers still have to pay attention to trends. Sometimes their lack of sales is due to the economy but other times it is because their inventory is lacking something. Despite economically tough times, people are still shopping. The malls are still full and people are racking up credit card debt. Therefore, retailers sometimes have to re-evaluate their stock and see if they have the "latest and greatest" products. Something out there is "hot" and retailers have to make sure that thing is in their store.

Despite challenges and downturns in the economy, it still isn't difficult for people to purchase new items. It may mean that people are increasingly irresponsible with their consumer purchases, but for retailers it signals hope that they can always entice customers to spend.

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