PESTEL Analysis OF Zara Economic Because it can encourage or dissuade consumer spending, the state of the economy can change consumers' buying patterns. The populace has more disposable income and greater consumer confidence during periods of rapid economic growth. People then have more money to spend on clothing and accessories, increasing sales for the retail sector. As opposed to when there are recessions and high unemployment rates. Money is prioritised to meet basic needs like food and shelter when there is less money available for other uses. Reduced sales and revenue are possible in the retail industry. So, the retail industry can produce more revenue and profits the better the economy is.
