As if we needed more proof, here’s more evidence that having a Plan B is no longer an option.
In a recent USA Today article entitled, “The basics, some extras, savings: You need $150,000 a year” it clearly lays out the need for companies like Yoli to emerge in the marketplace to help people out from all walks of life.
Click here now to read the complete article.
Here’s an excerpt:
Feeling the strain
And it’s not just the lower-income consumers feeling the strain. Three groups are experiencing higher rates of financial struggle: those with incomes between $100,000 and $150,000, those aged 18 to 34 years old, and women.
According to this year’s “How America Shops” survey, it now takes an income of more than $150,000 to be able to afford the basics, some extras and to save, too.
As for the once-coveted 18- to 34-year-old market, it is now the demographic struggling the most when it comes to buying power.
In addition, about 75% of women say it’s important to get the lowest price on everything they buy, up 12% points from 2008. In this group, 68% are using coupons regularly and 45% are only buying items on sale.
Since the financial crisis, retailers have employed heavy promotions, perhaps unintentionally cementing these shopping behaviors.
“Retailers have trained women to never pay full price and take pride in being a smart shopper,” Corlett said. “It’s a real struggle to sell anyone anything at full price.”
Because price has become central for decision-making, some brand names will suffer, particularly with women shoppers, Corlett said. Some 67% of women said that trusted brands are not worth paying for and they are pausing to consider whether it’s a smart use of their money.
“It’s an income issue, but it’s also a value issue,” she said. “We have lost that mindset of we have to buy, buy, buy, . . . we’ve built in a lot of push back. Retail sales will be up, but people aren’t buying everything they want, they are buying what they need.”
As a result, retailers need to ask themselves: can they afford to take price increases if they are selling to a shopper that can barely afford the basics?
“Frivolous is out,” she said.