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Retail Pricing Strategies in Flux as Economy Wilts

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After months of being nagged daily 

it seems as though consumers are starting to get tired of having to deal with these economically challenging times on a daily basis.

The widely-followed University of Michigan Consumer Sentiment Index recently sank to its lowest level since 2001, at a time when the economy was in a much worse state than it is today.

 In case you missed it: Off-price becomes on-trend. The downsized expectations will mean different things for different brands.

For instance, last December Bloomberg reported that Nordstrom was trying to figure out what to do with its floundering off-price business, Rack.

Six months after announcing their launch, Nordstrom has said that its Rack stores are already the future of its business, and will be adding a further 250 locations. 

SEI commented on the news saying that, although it may reduce revenue in the short term, short haul shipping is key to long term success.

Economic

Customers are opting to buy store brand products instead of more expensive organic grocery brand merchandise. 

By 2023, consumers will continue to prioritize the cost of the house brands over sustainability concerns or quality.