Surprisingly the BBC has suggested that the recession actually produced a beneficial average household income; however it was the recovery period which has caused the problematic implications for the general public.

The recession which has been said to be the worst fall in gross domestic product in 60 years, yet the BBC highlight that the average family was actually 1080 pounds better off every year in terms of spending power. It has been the recovery period which has resulted in heightened taxes, spending cuts and a real increase on how much daily life costs us all.

The Office for National Statistics has interestingly published that household spending is on a fairly sharp rise after the recession period. From the slowing of spending beginning from the fourth quarter of 2007, it began a plummet for three consecutive quarters during the third quarter of 2008. Following this, the second quarter of 2009 showed the first glimpse of a rise in household spending and although it has continued that rise, the previous drop has had its adverse effects on economic growth.

Local businesses have seen a decrease in demand while their offerings just cannot reach the standards of the cheaper and far larger corporations. Local gyms, newsagents and grocery stores are amongst some of the many businesses that have either had to close or bear the brunt of raised costs and lowering income. While people are pressured to watch spending and only buy what they need, attention is taken off some of the higher quality, more expensive products and services, and instead transferred to the cheapest alternatives, utilising economies of scale or completely making the previous cost a now yearned redundancy.

However quality doesn't always have to be expensive. The economist has found a rise in companies that strive to produce high quality goods at accessibly low prices. These companies are taking a large risk in potentially compromising on their projected image to the consumer; nevertheless, in a time when people are looking intensely to find high quality at their reduced disposable income levels, these companies may have just found the key to a successful recession recovery business plan.

Additionally pound shops have begun to take over high streets as one by one stores close down, only leaving strong demand for the lowest of price stores to remain. This ties in well with the consumer demand for quality at low prices. Household income for some has been affected so strongly that all daily shopping can only be done at truly the cheapest stores around; consequently resulting in a variety of one pound shops opening around the country in order to race for this demanding market share.

With so many discount and pound stores around, a price war wouldn't be the best course of action with prices already as low as possible. Instead these firms are trying to offer the best quality products at the prices they guarantee. Some firms may keep trying to undercut competitors pricing further and further, however the best way for companies to survive in this tough recovery period would be to focus on quality, but at a price that the general public can afford.