The first point to keep in mind is that, whilst overall spending does contract, what does more damage to most retailers is failing to connect with the change in consumer spending patterns. The emotional shift in consumer's minds from ambition to self-preservation makes people buy differently, but they still buy.

In previous recessions consumers have increased spending on escapist pursuits like going to the movies, upbeat music and lower-cost indulgences like take-away food. This shift isn't about what's useful; it's about what's enjoyable without feeling excessively indulgent.

From a psychological point of view, consumers are looking for ways to lift their mood. Interestingly, psychologists have observed that people have a sort of pre-determined level of happiness. Even dramatic events like winning the lottery or the death of a close relative don't shift this level for very long in most people.

With these factors in mind, here are five tips for surviving the economic downturn in retail:

1. Watch what people are buying from you; it will change. Use this as the most reliable indicator of what they want and work harder at promoting these products.
2. Consumers (and people in general) are surprisingly sheep-like: where consumption of something becomes more visible it will spread more quickly. Look to see what people are consuming in your area and tap into it if you can.
3. When market conditions change people will change the distance they're prepared to travel; they may be willing to drive further if they believe they can save money (even if the numbers don't actually stack up when travel and time are taken into account). Currency fluctuations may make your store more attractive to customers in another country. Look at where your business is coming from and consider how you can direct your marketing activity in that direction to let other prospective customers know you can meet their needs too.
4. Similarly, people will change how they buy. Are you selling more or less over the internet, phone or in-store? Are people using cash more or less than credit? Are you making it easy and clear to prospective customers that you can sell the way they want to buy?
5. With fear such a big driver of human behaviour; and in a recession there's a never-ending supply of media stories to prime such fears; customers need a powerful reason not to put off spending. Keep promotions tightly focused and change them frequently; knowing that an offer is genuinely only available for a short period or that currency changes mean the cost will increase after the next order may provide good reasons for them not to delay buying.

The old adage that 'retail is detail' is never truer than during a recession. The key is to be very aware of where your business is coming from and to adapt your marketing activity accordingly. A classic mistake is to assume consumer behaviour will be rational; it rarely is. Let your own customers' behaviour be your guide to your activity.