Recently I've heard several interviewers ask some version of the question, "Is the idea of British royalty outdated?"
In reply, some people say the idea is indeed outdated, even as others voice their support.
Opinions on the question aside, the media's obsession with the marriage of Prince William and Kate Middleton makes one thing screamingly clear: a royal wedding still attracts world-wide attention.
Millions remain enchanted with the "fairy tale" -- it's about castles, an heir to the throne, a prince and a princess.
The enchantment also has a practical side: more tourism money for the British economy. And British businesses can use the extra coinage. Shoppers there have not parted with their pounds as readily as they did a few years ago. Consumer confidence in the U.K. has been sagging. See the chart below (wave labels removed).
Note the stark divergence between the FTSE 100 and consumer confidence in the past year.
"Nationwide’s survey [shows] the all-important observation that confidence has taken out early-2009's pessimistic low point. So, consumer behavior has aligned with the wave structure, arguing that early 2009 marked a temporary pause, rather than a lasting bottom..."
This all-time low in consumer confidence reflects both British frugality and the increasingly "cheap" cost of goods.
"...entrepreneurs who embrace the public’s unrelenting thrift are making steady progress toward a lucrative future. 'Cheap is cheerful for [retailer] Sports Direct,' says the Financial Times. 'Piling it high and selling it cheap has proved an effective strategy.' It’s true. 'If you go into the stores,' says an analyst, 'you think, 'God, this is cheap.'' Even though retail sales in the UK remain depressed, the sports retailer saw a decisive jump in third quarter sales and profit. The winning strategy, however, clearly requires discounting on a massive scale."
That same issue of the EFF tells of a British "no frills" gym where customers bring their own towels. The gym's owners discovered they've become a favorite among the unemployed.
The April EFF also tells the story of price competition between British grocers, as they cater to frugal customers. One grocer offered "cash vouchers to customers who found lower priced items at rival stores." Shoppers soon found ways to game the system as rival grocery stores tried to compete on price.