The Traditional Retail Industry In The United States Is Also Struggling.

Not only China, American tradition

It is also struggling, but what is not discussed here is not being squeezed by online consumption.

Business Insider reported in the report that many recent US traditional retail companies or department stores had poor performance.

One important reason is that they have successfully trained consumers to be customers who only appear in the discount period. This phenomenon is causing their business to fall into a vicious circle.

In the past, consumers were willing to pay more premiums for "new products", and were also willing to go out of the consumer experience.

Quality and choice in tradition

Company shopping.

But now the situation is, when consumers produce most goods will have a big discount sales expectations, are they willing to buy at full price?

BI quoted the CEO Art Peck of Gap, one of the largest clothing companies in the United States, and said it was too hard to pull customers back from promotional activities.

If retailers begin to tighten up promotional activities, it's like playing hawks with consumers. At present, we have seen such a situation.

The report also quoted Betty Chen, managing director of Mizuho Securities, commenting that customers now generally expect a discount of thirty percent off or forty percent off.

The way you want them to buy more is to make your store look faster and fashionable.

But obviously, not all retailers have Gao Min's sharpness and mobility similar to the fast fashion brand.

At the time when customers of non Fast Retailing traditional retailers are losing day by day, both the industry and consumers are sacrificing their quality requirements.

This is obviously not only a "death" of merchants themselves, but also can not meet the requirements of consumers to speed up the change of commodities.

The Conference Board released data in May 31st, indicating that the US consumer confidence index was lower than expected in May. Many consumers believe that the US economy will be uneventful in the next few months.

Detailed data show that:

The US consumer confidence index in May was 92.6, the lowest in November last year, lower than expected, the consumer confidence index was 112.9, also the lowest in November last year, and the consumer confidence index was 79, the lowest since February 2014.

Although the Fed has entered the interest rate channel, the slight stagnation of wage growth has always been one of the important factors that will impede its next move.

This may be the most important reason for changing most consumer spending habits.