In this intimidating economic downturn, the wholesale retail business seems to be an industry fairly protected from its effects. From summer on, we’ve been warned of a slump of the US economy by many an analyst. Investors are increasingly nervous due to declining sales of real estate, as well as a troubled sub-prime lending market. However, there is hope: the U.S. Census Bureau’s Monthly Wholesale Trade: Sales and Incentives Report claims that those in the wholesale market continue to rake in huge returns, even compared to the previous year.
For merchant wholesalers, the sale of durable goods amounted to over $350 billion in December 2007. Compared to November numbers, sales has decreased by a margin of .2% to 1.2%. However, when compared to the previous year, wholesale trade benefited from a 9.3% to 11.9% improvement in sales. Even better news comes from the non durable goods trade! From December 2006 to December 2007, they enjoyed an 18% increase in sales.
As almost every current report on the economy tells us that consumer spending has decreased, owing to the rising prices of gasoline and other needs, this news is very important. Despite the need to pinch pennies at the gas station, the American consumer culture dictates that new items will still be desired and sought after. One possible explanation is the growing consumer base of those who want to purchase wholesale products.
In this financial climate, the average American family may not be able to afford, for example, brand-new retail washers and dryers. However, they could afford one that was dented as a floor model, or returned by a customer for a reason not owing to its functionality. Regardless of the economy, people will still need a washer or dryer, and that basic need won’t disappear.
By putting funding into advertising, wholesale retailers can take advantage of this chance. You have the fantastic bargains they’re looking for, since fewer people can buy high-ticket items on retail anymore. Some possible methods include getting some products not normally stocked at your store, or emphasizing different items in fliers. It’s worth trying anything to get more people to your store or website. While the economy is dwindling, the consumer’s need for products won’t!
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