Forty percent of Americans expect to have less disposable income this time next year, while half as many (21%) anticipate it will increase. Few say they are planning a major purchase in the coming year, including retail items such as a major appliance (12%), an HD television (12%) or a computer (16%). Of those who plan on making a major purchase, 24% say they plan on buying something used. Americans are feeling insecure: Just 35% believe the economy will be better, and 43% expect the unemployment rate will be 10% or higher by the end of this year.
So retailers know they can't succeed without adjusting. They must adapt to the new, more frugal and utilitarian shopper or face extinction.