"Many retailers have been struggling in recent months as cash-strapped consumers pull back on nonessential items like furniture, clothes and jewelry due to soaring food and gasoline prices.

They will need low cost, low risk growth strategies, with a measurable benefit to the company.

"The consumer is focused on buying what they have to have, not what they want to have," said Howard Davidowitz, chairman of Davidowitz & Associates, a New York-based retail consulting firm.

Historically, macro-economic forces have not slowed down TJX's value-oriented customer. A slowing economy can motivate consumers to shop off-price. We expect this trend to continue in 2008."

That is good for Walmart and Costco, but where does that leave everyone else?

Here is our perspective. The bulk of the work we do is with multi unit operators, We gather feedback and create engaged two way relationships with buying customers, browsers and potential new customers. Most of our clients have physical locations (bricks) We gather feedback from web customers as well (clicks). When customers become finicky about what they are spending, engagement is critical.

Engaging a broader community: customers, browsers/low brand users, competitor customers and new customers is critical. The trick is to engage a larger share of the existing and potential market for clients goods and services. Our particular angle is engaging this broader group into an interactive, fun, rewards based, LONGITUDINAL relationships. UP TO 75% OF OUR FIRST TIME RESPONDENTS GIVE PERMISSION TO ENTER INTO A CONTINUOUS INTERACTIVE RELATIONSHIP FOR KNOWLEDGE AND PROFITABLE ACTION (CONTINUOUS MARKETING AND TARGETED PROMOTIONS). People buy what they buy but think about where and when they buy. They want fun and rewards, while they have a voice in the brand and the experience.

Building interactive, knowledge driven relationships with vast numbers of your customers and POTENTIAL customers can be used to more effectively shape your offering and promote the traffic you are seeking. Because this effort is Web2.0 Centric all this becomes very measurable with data that can help you squeeze out profits from the tight current market conditions.

Reference: http://www.reuters.com/article/reutersEdge/idUSMAR66661120080506?sp=true