Consumer Confidence and At-Retail Activity on Rise

A couple of recent developments have raised the hopes of retailers, CPG manufacturers and the U.S. economy as we enter the New Year. A huge Black Friday brought the start of what is expected to be record holiday sales and served as a gauge into the collective intentions of American consumers. That sentiment was confirmed this week with the release of The Conference Board Consumer Confidence Index for the month of November.

Any analysis of the economy has to be taken with a grain of salt. The roller coaster ride of predicted recoveries and subsequent dips have proven to be undependable at best. However, the Index improved greatly in November after six months of steady decline. The Index now stands at 56.0, up from 40.9 in October. This index was set at 100 in 1985. The Present Situation Index increased to 38.3 from 27.1. The Expectations Index rose to 67.8 from 50.0.

Consumers that say business conditions are good increased to 13.3 percent from 11.2 percent. Those claiming jobs are plentiful increased to 5.8 percent from 3.6 percent. Consumers who anticipate business conditions to improve over the next six months increased to 13.6 percent from 10.2 percent. Consumers expecting more jobs in the months ahead rose to 12.9 percent from 10.8 percent. Those who anticipate an increase in their incomes rose to 14.9 percent from 11.1 percent.

For members of the at-retail merchandising and marketing industry, another important indicator is the level of in-store activity being sought by retailers and manufacturers. Judging by the level of activity on NARMS JobBank and NARMS Recruiter database, business is healthy as NARMS members are seeking more merchandisers to help them fulfill their mission at stores around the country. If your company is staffing up for the surge, consider taking out an expanded listing on www.narms.com and availing your company to the original, best and most cost effective recruiting tool in the business. If you already use the Recruiter, pushing your jobs to the forefront by advertising on NARMS JobBank can help you secure the best and brightest.

A Thanksgiving Inventory

Those of us in the at-retail merchandising and marketing world often see the Thanksgiving time as key date on the retail schedule. With Black Friday the next day, it is the official kickoff to the holiday sales lift and the make or break period of the sales year. But today, let’s take pause from all of that and focus on what the holiday is all about. It’s about inventory, the inventory of all the blessings in our personal and professional lives.

No doubt about it, it’s been a rough 18-24 months. The recession has taken its toll on all of our lives in a deep, meaningful and probably lasting way. But through it all, the members of NARMS have continued to support the advancement of the industry through continued membership, involvement and sponsorship. Your time and your treasure are greatly appreciated.

Because of this level of commitment and support, NARMS has actually been able to expand our service offerings to meet the needs of the marketplace in a time when many are pulling back. We are busy planning the 2010 Spring Conference at the Saddlebrook Resort in Tampa. A bold agenda that will feature our new NARMS-U platform is taking shape. Speaking of the NARMS-U educational platform, our NARMS Webinar series continues to receive high involvement and accolades as an indispensable member benefit.

Come to think of it, there is almost no area of the association that has gone without improvement and evolution. JobBank now has an unprecedented reach into social networking circles. We are bringing service companies and trading partners together with the StratConn business meetings and the Manufacturer and Retailer Sessions at Spring Conference. On the field personnel side, don’t forget about NARMScertify U and a potential field rep conference being worked on right now.

There is also new and exciting research on the way with the first offering of the RORI study, The Survey of At-Retail Marketing Services, continued research on the effects of Demonstrations and Sampling by Dr. Kenny Herbst and an update of PIC Division research called, “Continuing to Build out the Future of Retail.”

About halfway through the inventory, it’s apparent that this list goes on and on. So let’s just take time to reflect and give thanks for all the things that are good and right in our lives. And chief among those inventory items are the people of NARMS.. So whether you’re a member, associate, service provider, staff or friend, thank you for being part of our world.

Embracing Inclusion in Ethnic Retailing

As retailers and manufacturers stare down the reality that even early Black Friday sales may not be enough to lift them out of dark economic times, the optimist in me is looking for some good news. There has to be some good things happening out there. Then I happened along an editorial by Supermarket News Editor-in-Chief David Orgel who has written about the momentum surrounding Ethnic Retailing. Indeed, recent news points to expanded initiatives catering to Hispanic customers from Sam’s Club, Nash Finch, Food Lion and United Supermarkets. Orgel says that these are more than just demographic trends and the fact that retailers are spending significant capital on new formats during tough economic times supports his conclusion.

The key to the recent success of the ethnic format is inclusion. What may have started as a niche concept has quickly evolved as a way to grow overall base by catering to the needs of the Hispanic and other ethnic communities, and yet still invite in the mainstream shopper to experience new items.

What this may be nurturing is a new playing field for our customers and an opportunity for us to provide at-retail merchandising and marketing programs to support them. As Orgel point out, “Ethnic retailing is a sector that is far from maturing, isn’t hurt by new competition and appears to thrive in any economy. How many other sectors can you name that meet all of those criteria?” While much of his commentary zeroes in on the Hispanic market, he is quick to point out that many of the same points can apply to other ethnic segments. The increase in options has proven to be an enticement for mainstream shoppers to visit stores more often.

Since capital expenditures, format expansions, category resets, and new item introductions have a positive result on the business generated by NARMS International members, it behooves us all to become better versed on the retailers and manufacturers that are choosing this path to build their base business. Applying the principle of “Inclusion” could open up doors that go well beyond a niche or a fad.