Kavan Choksi Discusses Retail Sales Strategies for Recession

When there is a recession, almost everything in the economy declines as unemployment rises and consumers are less willing to spend money. Kavan Choksi mentions that as consumers tighten their pockets and spend less during a recession, it becomes harder for retailers to keep their businesses afloat. Retailers need to get creative in order to increase their revenue and stay competitive.

Kavan Choksi underlines a few retail sales strategies for recession

Economic downturns like recessions can tend to have a significant impact on consumer spending habits. Hence, during such periods, it becomes important for retailers to adjust their strategies to meet evolving customer needs and preferences.  With adequate preparation and flexibility, a recession can become an opportunity to improve customer loyalty, boost productivity, and strengthen the market position of a retail business. Here are a few tips retailers may follow:

• Focus on value and affordability: Consumers are likely to become more price-conscious during recessions, and prioritize value driven purchases. Retailers need to highlight become more price-conscious in their offerings, to catch the attention of the target audience. They may even consider offering bundled deals, promotional offers and discounts to attract budget-conscious shoppers.
• Reach out for referrals: Word-of-mouth is a factor that influences a large percentage of purchasing decisions.  Hence, retailers should consider asking existing customers to refer to someone who will benefit from the products or services offered by retail businesses.
• Adjust the product mix: It would be smart to adjust the product mix of a retail business to appeal to recession-conscious consumers. If possible, retailers need to focus on selling products high in demand with a low price point, while also offering high-end items for less price-sensitive consumers. Trying to appeal to a broader audience can be quite advantageous during a recession
• Optimize pricing strategies: While product price is always an important factor that influences purchasing decisions, it becomes doubly important during a recession. A retailer must evaluate their pricing strategy and try to reduce the prices of certain products to attract price-sensitive customers. However, this does not mean that they should compromise on profit margins. Instead, retailers need to aim for a dynamic pricing model that adjusts prices based on supply and demand.
• Create an online presence: In this digital age, having a robust online presence is important to have a robust online presence. Retailers must optimize their business website for search engines and make it easy for consumers to find and purchase products online while enjoying a seamless user experience. Moreover, retailers must also utilize social media platforms for showcasing products, offering promotions, and fostering customer engagement and loyalty.

Unfortunately, several salespeople focus so hard on bringing in new customers to a business that they forget to check how many are exiting from the backdoor. This especially happens during peak store periods. As per Kavan Choksi, a retail business cannot afford to lose any customers during economic downturns. Hence, they need to focus on customer satisfaction and retention. Satisfied customers not only make purchases from a business time and again, but can also refer the business to their family and friends.