How the Global Economy Could Impact Your Store in 2012

How the Global Economy Could Impact Your Store in 2012

 January 26, 2012 

The 2012 IGA Global Rally in Las Vegas is just around the corner. Today, Economist Anirban Basu sets the stage for his presentation regarding the global, national and regional economic outlook and how various trends and events could impact store performance and the achievement of revenue/profit objectives.

The global economy is awash in uncertainty. Volatile financial markets; hotspots in Iran, North Korea, Europe, Russia, and Pakistan; declining home values; disciplined lending; high unemployment; large federal government deficits; and gridlock in Washington, D.C. are all cause for concern. But if these were the only things characterizing the performance of global and national economies, IGA stores would not be performing as well as they are. In fact, while many observers continue to use the language of recession, the U.S. economy is in the midst of its third year of recovery. Consumers have helped to lead the way, including by increasing their holiday spending by 5.1 percent last year.

What is inducing the consumer to spend? There are a number of factors ranking from the 1.6 million jobs added by the U.S. last year to the notion of frugality fatigue. In other words, consumers are tired of not spending. Many have refinanced their mortgages, moved to smaller homes, rent rather than own, share an apartment, or have moved back into their parents' homes in the wake of the Great Recession. This de-emphasis on housing has created resources available to be spent on other items in the economy, including at your store.

Bottom line: the economy is a confusing assortment of trends, cycles and inconsistencies. On the one hand, consumer confidence remains low. On the other, consumers are flooding malls, outlet centers and restaurants, and at the same time, beginning to make more non-essential purchases at grocery stores. My presentation at the IGA Global Rally will strive to provide some clarity amidst the clutter. The fact of the matter is that the economy is growing and with that growth comes opportunity. Understanding present and future economic trends will help you make better, more informed decisions regarding your business.

I look forward to exploring with you the various aspects of the economy and sharing my insights on what factors might affect your stores and the members of your community this year.

See you in Las Vegas!

Thanks,

Anirban Basu

It's not too late to plan to join us at the IGA Global Rally. Visit the IGA Global Rally website to register to attend.