Show them the value

Despite all of the negative news about the economy, U.S. consumers actually are optimistic about 2009, at least according to consulting firm Cavallino’s “2009 Consumer Shopping Intentions Study.” According to the survey, nearly 63% of respondents said they expected the economy to improve by the fourth quarter of 2009.

Even so, consumers will remain cautious about how they spend their money, and retailers presenting the best value message will win out.

“Shoppers want consistent value and everyday low prices. This is why the Walmarts and Targets of the world will grab a bigger share of consumer spending in 2009,” said Cavallino chairman John Rittenhouse, citing data from the firm’s Ninth Annual National Shopping Behavior Study.

Of those surveyed, 40% of department store customers who changed where they shopped during the 2008 holiday season shifted to discount stores, 37% of mid-line (e.g., JCPenney, Sears) customers who changed where they shop shifted to discount stores and 33% of specialty-store customers who changed where they shop shifted to both department stores and discount stores.

“These findings are consistent with data from ‘The Gordman Group 2008 Retail Trend Tracker’ studies,” Rittenhouse said. “When the economy turns around for retailers, and I have a strong indication of when it may, stores that offer products consumers want to buy at fair, everyday prices will have sustained, profitable growth.”