Recession Survival Strategies

The recesssion is not bad news for everyone. In 2008, Cinema revenues  reached a record high of £854m or 164 million. At just an average of £5 per visit, Cinemas offer a relatively cheap night’s entertainment. People are often cutting back on expensive forms of entertainment and choosing cheap forms of entertainment.

Cutting Prices

Waitrose is rebranding itself and is aggressively competing on price with cut price retailers like Aldi and Netto. They have brought out a new range of budget products – Waitrose Essentials. At the present time, shopppers are increasingly cost conscious so this pricing strategy will help to retain market share. There is a danger that by cutting price they may dent their image and when the recession is over they may struggle to increase prices. However, I don’t think this will occur, I feel most people will just be glad their supermarket is cheaper. Waitrose were finding people were buying less items and going elsewhere to buy budget items.

However, there would be more danger if a big clothing retailer tried to compete with the likes of Primark and Matalan. I think that could damage their image in the long term