NEW YORK — Food retailers expect consumer spending to remain under pressure in 2010, which in turn will hold down their own bottom lines, according to a survey conducted by SN.
More than two-thirds of retail respondents — about 68% — said they think consumer spending will be about the same in 2010 as it was in 2009. Most of the other respondents said they think spending will be marginally better than last year, and only 1.8% expect spending to improve significantly.
The economy also remains retailers’ biggest fear in terms of a threat to their business in 2010, with 60.6% citing reduced spending from high unemployment and weak consumer confidence as a bigger threat to their businesses than competition from non-traditional operators.
More than 70% of retailers in the survey said they planned more price-focused advertising in 2010, with most of those — 57.8% of the total — saying they would increase price focused advertising "a little" vs. 13.8% who said they expected to increase such messaging "a lot."
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