Retailers did not bother about shoddy businesses though they had same situation for years. They kept on investing into their business because they had enough confidence on their consumers shopping continuously. But as the recession strikes the economy, they don’t see any consumer shopping as lavishly as he did in good times. In fact people are even hesitating to shop for general things and are desperate about cutting expenditures to cope up with the recession.
So retailers now had to change their strategies of doing businesses. With the analysts predicting more bad times ahead, they started preparing to face the frugal environment out there.
The major change in the strategy here will be to reduce their inventories, as much and as soon as they can. In order to do that they are selling off their stock desperately at more and more lower rates through discount prices. The present trend is to gain more customer satisfaction than to earn big profits.
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