According to NRF chief economist Jack Kleinhenz, retailers are expected to compensate for this fundamental shift in shopper mentality by offering significant promotions throughout the holiday season and emphasizing value throughout their marketing efforts,”

Colin Sebastian of Lazard Capital Markets is predicting e-tail growth of 10-15 percent this holiday season but also warned that customer acquisition costs could go up as well since more and more shoppers tend to begin their online shopping on search engines and marketplaces.

Retailers can position themselves to benefit from shoppers caution by responding to the interest in low prices. Consumers also noted that they favor the retailers that offer a broad selection of product choices.

Ann Taylor reported a second-quarter profit and rising sales that even bested their lower-priced namesake Loft chain, which used to be a superstar during the recession. MarketWatch quotes the company saying gross-margin comps “dramatically outpaced” sales performance because of “the strength of the full-priced offering.”

It’s an encouraging report for women retailers. Often, women retailers feel the effects of a recession harder than other companies. When women oversee the household finances, they tend to cut back their own spending first. Plus, Ann Taylor, a retailer known for supplying professional clothing, found itself in a tricky situation trying to sell business clothes amidst job layoffs and potential job layoffs.

While the economy still isn’t in great shape, it’s nice to hear that retailers can do well in the present situation.

According to a recent study done by the Pew Research Center, consumer needs aren’t the same as they once were. According to the study, just 42 percent of Americans say they consider a television set a necessity, down from 52 percent just last year and 64 percent in 2006. The landline telephone also saw a dip in numbers. Of those polled, 62 percent still consider the landline phone a necessity, down from 68 percent in 2009.

“It’s true that in the digital era, consumers know they can watch a lot of television programming on their computers or smartphones,” Pew said. They also can make calls from their cell phones, a belief young people especially share. Fewer than half of those in the 18-29 age range consider a landline phone a necessity, but almost 60 percent think a cell phone is a must have item.

The report also shows people consider cars, clothes dryers, microwaves, home air conditioners and home PCs as less of a necessity than years prior.

“This suggests that the psyche of the American consumer is in a much different place now than it had been in the heady days before the recession.”

Still, just because more people categorize certain goods as a luxury over a necessity doesn’t mean the products aren’t selling. Retailers can take this information and apply what they know to their future marketing strategies.

Marshal Cohen, chief industry analyst with the NPD Group, told msnbc.com, “The consumer is not in any rush.”

An earnings call from Walmart indicated more shoppers are making their school supply purchases closer to their schools’ start dates. The National Retail Federation also predicted a quarter of school shoppers won’t begin their back-to-school shopping until one or two weeks before school begins. In some cases, families may even put the shopping off until later in the fall after seeing what’s in style and what students really need.

Still, the National Retail Federation predicts American families will eventually spend more on back-to-school supplies and clothes than last year. Back-to-college spending should remain about the same.

Meanwhile, retailers are offering deals for the customers now. Abercrombie & Fitch’s jeans are currently 40 percent off, Target is offering free shipping on $50 online purchases and Amazon.com has bargains on coffee makers, printers, microwaves and textbooks for college students.

Half of consumers surveyed are taking fewer trips to the store and shopping closer to home. More consumers are also leveraging the Internet. About ninety percent of shoppers said they research products online before buying in a store. They also use the internet to find store locations, hours and merchandise availability to prevent a wasted trip in the car.

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Grocery bills have sky rocketed in the past year and MySupermarket.co.uk claims that a typical family faces a £1,000 rise in the amount it spends in supermarkets over the coming year.

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What can service workers do to improve tips?

When times are tough, service workers need to pay special attention to customer service. Happy and satisfied customer can lead to higher tips.

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