US consumers not the only ones dealing with payroll tax impact
While the payroll tax increases, which were implemented at the beginning of 2013, are hitting American consumers hard, they are not the only group being forced to make changes to their finances. The retail industry is also being impacted by the changes, as customers are cutting back on their spending, forcing merchants to revise their revenues.
The National Retail Federation reports that approximately 73.3 percent of American consumers are reducing their spending, as they now have less take-home pay from their wages. Some of the strategies that shoppers are using to save money include visiting discount stores for better prices, foregoing entertainment expenses, cutting back on vacation and travel plans and seeking out deals and coupons from retailers.
These methods are sure to be felt within the retail industry, and many companies are revising their own spending levels to cope with the payroll tax impact. According to The Wall Street Journal, some merchants are readjusting their prices to make them more attractive for shoppers. Also, big name brands such as Burger King, Walmart and Kraft are revamping their marketing strategies and decreasing their sales forecasts.
