Consumerism Commentary - Latest Comments in Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

Eden — Fri, 16 Jan 2009 08:17:20 -0000

Great analysis. I agree. Wal-Mart is of course just trying to spin things to benefit it...as would any good marketing department. If Wal-Mart is really ready for a new era of frugality I guess we can expect stores to throw out all of the expensive electronics, toys, games, and just focus on selling inexpensive, high quality food and clothing, right? That's all we really 'need'.

On the other hand, personally I've shifted my life to one of much greater frugality. However, that came about before the financial meltdown and I'm doing it to get out of debt and get my life under control. Not because I'm worried about what's on the news tonight.

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

J.D. — Thu, 15 Jan 2009 12:27:16 -0000

Interesting. I hadn't seen this article. And I'm not sure that I agree with it. I'm actually a little puzzled by the current economy. I understand that the statistics demonstrate that we are, in fact, in a recession. I've lost money in my retirement accounts. I know some people who have lost their jobs. But I don't actually know many of my friends who have altered their lifestyles. The spendthrifts are still spendthrifts. The frugal are still frugal. I wonder what other people are experiencing in the day-to-day...

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

SimplyForties — Wed, 14 Jan 2009 15:08:30 -0000

I would think a shift toward the frugal would help Walmart, not hurt it. Clearly, not spending at all hurts retailers but I would think Walmart would pick up shoppers during tough times, not lose them.

I do agree that it is much too soon to say that we've undergone a fundamental shift towards frugality. We won't know that until we see how everyone acts when the economy picks back up again.

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

Kevin — Wed, 14 Jan 2009 10:19:29 -0000

I agree that it isn't permanent. We're a spending economy. I thought I read something recently that said SUV sales were up because of low gas prices.

So not only is it temporary, we also can't see past five minutes in front of us. Gas prices are going to go up.

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

Shawn — Wed, 14 Jan 2009 03:23:33 -0000

I do a great deal of shopping at Walmart/Sam Club and consider myself frugal. I do believe that the shift is temporary. A lot of people feel broke right now and really just want good deals, which is what deep discount stores often provide.

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

thomas — Wed, 14 Jan 2009 00:26:38 -0000

I must be really frugal - I avoid Wallyworld at all costs.

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

Manshu — Tue, 13 Jan 2009 18:17:38 -0000

Temporary or not - only time will tell. Probably we will see a little less spending in the years and decades to come.

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

Craig — Tue, 13 Jan 2009 14:01:06 -0000

I agree with that, it would take almost a generation to really determine if views and consumer thinking have changed. I'm curious to how would you base this. Say 20 yrs comes, what in your mind determines if things have changed with consumer thinking?

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

Harlan Landes — Tue, 13 Jan 2009 13:59:25 -0000

I agree that there have been adjustments, temporary adjustments. When companies can, they will re-hire. I disagree with Wal-Mart. There has been no fundamental change in consumer thinking, just a temporary change. Similarly, there not been a fundamental change in the way businesses approach sales and marketing, just a temporary change. For consumer thinking, we'll need 20 years or so to see if values are changing.

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

Craig — Tue, 13 Jan 2009 13:44:39 -0000

@flexo Americans love to shop, that's a fact. Once the economy improves, I agree I think you will see more spending. I disagree in how you think companies have not adjusted. Of course they have. Layoffs are one indication they are adjusting, as well as if you look at the numbers, marketing budgets are decreased and focused on different areas to gain visitors. I think the economy is forcing everyone to adjust somehow.

Re: Wal-Mart: Consumers Have Shifted Fundamentally To Frugality

Chris — Tue, 13 Jan 2009 13:41:35 -0000

Of course, it's temporary. So was the housing bubble, and the dot-com bubble, and everything else, too. Just say it's cyclical, why don't you?

Besides, pollingreport.com/consumer.htm has listed quite a few indicators, such as the CCI and the MSCI, that say that consumers in general are much less than optimistic about current and future conditions.

I doubt what you're looking for will be found, anyway. You don't market to people to not spend money. You market to spenders. Thus, marketing probably won't change significantly, anyway. I can see it now: Super Bowl ads for private label groceries. Not gonna happen.