Working individuals face a recessional Armageddon of significant proportions

BY STEVEN KASZAB

Consumers will significantly reduce their holiday spending, with 47% expecting the economy to weaken in the next year, and 67% expecting a recession. 55% are worried about rent/mortgages, with 33% worried about paying for the gifts they are going to buy.

Canadians holiday spending will decrease by 11-15%. Bhajans will spend far less than last year (22%). Jamaicans holiday spending will decrease significantly too. Americans spending will decrease by 17%-28% from last year. 76% expect the prices of these gifts to increase unfairly.

Customers worldwide will visit many more stores to purchase their targeted gifts. In Canada 16.5 stores, in Jamaica 6.2 stores, Britain 11.3 stores and America 8-12 stores or more. Shopping price value is the primary requirement of customers this holiday season, and brand loyalty is right out the door.

41% of customers globally will purchase their gifts online. 55% of customers are willing to pay more for a product that is sustainable/ethical in nature, and more durable while remaining long lasting. Cheaper products may well become stocking stuffers and nothing more.

Global expectations as recorded by Deloitte International/Deloitte Canada, show a customer base worried about inflation, rising interest rates and unfair practices of the global retail markets, whether they be grocery, retail or manufacturing in nature. Customers worldwide hope to stretch their purchasing power to the extreme no matter the holiday being celebrated.

Fear has attached itself to consumers expectations, while both private and national debts rise uncontrollably. The public’s credit card debt has placed the banking and financial system on high alert, forcing call backs upon personal-business loans that seem likely to be too risky. This is exactly the situation the world found itself in before the Great Crash of the 1930’s. Multiple unstable/chaotic conflicts, very high personal and business debts, investments in items using credit as anchors for loan approvals, low global financial stock of precious metals to fall back upon.

Wage growth and employment has increased and while this is a good thing, it also increases retailers and manufacturing costs, ultimately giving these institutions a reason to further increase their prices. A very vicious cycle continues to spiral out of control as governments, corporations and the working individual face a recessional Armageddon of significant proportions.