Economic Scenario

Review the article below by Rebecca Thomas from way back in 2002.

This week you are studying the concept of “elasticity.” How do you think retailers or sellers could use the concepts of “elasticity” in order to stimulate pre-Holiday sales and or regular sales throughout the rest of this year in 2018 especially given the current state of the economy which is certainly not very strong with an unemployment rate of 23%, $20 trillion in national debt and going higher, the Fed. raising interest rates at a time when rates should be lowered or kept the same and with 93,000,000 Americans unemployed when the discouraged worker is considered. Not to mention millions of consumers have maxed out their credit lines and retailers are closing their locations nationally by the thousands.

The recent holiday season of 2017 was very successful however now we are seeing many companies begin additional store closings.

Welcome to the real economy in 2018 that the government does not like to face.

Consumer confidence is not very robust, households are facing higher levels of unemployment and debt balances.

The jobs that are being created are minimum wage jobs of very low wage jobs with few benefits. Many retail establishments are shutting their doors. Major chains such as Wal-Mart are closing stores that are not meeting profit objectives. They are closing over 60 Sam’s warehouse stores.

Retailers are witnessing decreasing sales and several years ago several long established firms such as Mervyn’s, Comp USA and many others have closed their doors. Payless Shoes just declared bankruptcy and closed over 400 stores.

So given the current economic scenario how could retailers use “elasticity” theories to take steps to try to increase sales the rest of the year and the 2018 holiday season or perhaps just keep sales from declining.

What variables would they have to consider in this strategy? ( ie: Price cuts may not always “take!”)

( Note: you should consider the current state of the economy and variables…..very high unemployment, consumer disposable income is down, level of consumer debt has increased dramatically in recent years, inflation in key sectors such as food, health care, until recently energy and the cost of living has been increasing which indicates inflationary pressures. Look at the types of jobs that are being created, cost of borrowing and credit availability. Many households have used up all their credit lines!

only needs to be 2 paragraphs

Do you need help with this assignment or any other? We got you! Place your order and leave the rest to our experts.

Quality Guaranteed

Any Deadline

No Plagiarism