In a new habit seen by some as the way things will be going forward, consumer-products makers say shoppers are now waiting until payday before making purchases, forcing retailers to re-think their current marketing plans.
According to The Wall Street Journal, “The so-called ‘paycheck cycle’—where shoppers make purchases in tandem with salary checks or government payouts and then pull back on spending as they run out—became more prevalent at the height of the recession. But many consumers are stubbornly sticking to that buying pattern even as the economy improves.”
This persistence of a “paid and then spend” cycle suggests that this might become the “new normal.” The ramifications on retailers may be hard to gauge, but it appears the trend is here to stay.
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