The inevitable has finally happened. Last weekend I had a heated argument with a friend whether or not the credit crunch is actually real.
Basically, it began with my (slightly) foolish assertion that the crunch is “a myth”, something that prompted an outburst I’m sure even he didn’t expect.
His argument was this: that people who are already in debt will find it even harder now that the banks have no money to be promiscuous with.
Fair point. At first, I was keen to point out that inflation and the credit crunch are not connected, that the price of food is not dependent on the wider financial world.
But after a bit of thought, it’s easy to see why such rage was apparent. Of course consumers will have less money to spend on groceries if they are being hit with higher bills elsewhere.
The crunch is likely to shape shopping habits, as hinted at in this week’s TNS market share figures.
All of this has a point, so thanks for continuing to read. I’m eager to see just how the economic situation is hitting retailers, do shoppers look in intricate detail at all this or is it a coincidence?
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