Michael Panzner

A Clear Distinction

By Michael Panzner on | More Posts By | Author's Website

Although there is some question about the difference between a recession and a depression, many people would probably agree that the latter tends to have a more pronounced and long-lasting effect on attitudes and behavior than the former.

If people believe that a change in circumstances is temporary, they are unlikely to reevaluate who they are and what they want out of life. However, it they come around to the idea that the old ways no longer apply, they tend to make more far-reaching adjustments in the way they think and behave.

Given that, the following collection of reports makes it pretty clear just what sort of downturn we are experiencing right now:

“Recession Alters What’s Really Needed” (Associated Press)

Americans’ appetite for the appliances that have become standard necessities in the past couple of decades declined through the recent recession, according to a recent survey.

U.S. adults were slightly less likely to call standard household items such as microwaves, the home PC, clothes dryers, cars, TV sets and landline phones necessities this year than in the recent past, according to the poll by the Pew Research Center.

To be sure, more than half of the people surveyed said still they considered a car, a landline phone, a clothes dryer and an air conditioner a necessity at home.

Younger people were less likely than older people to say they needed a TV. But younger people were more likely to say a home computer, high-speed Internet access and a cell phone were key accessories, the survey said.

“Recession Creates New Trend in Fashion Shopping” (Reuters)

The U.S. recession has changed how people shop for fashion, with an eye for special pieces rather than trusty wardrobe basics, and top retail buyers say this trend is likely to last beyond an economic recovery.

As Mercedes-Benz Fashion Week begins in New York on Thursday, fashion directors from such high-end stores as Saks Fifth Avenue and Neiman Marcus say they will be on the lookout for eye-catching collections to wow customers.

After a dismal 2009, retail sales have improved every month for the past year, but consumer confidence has been slow to recover and is only half as strong as at the start of 2008. Consumer spending accounts for two-thirds of U.S. economic activity and is considered critical to the recovery.

“We have seen a change in the way that customers shop as a result of the economic climate that we have been in, and I see that trend continuing,” said Colleen Sherin, fashion market director for Saks.

“Women are not necessarily looking for basics … they’re looking for wow pieces, something that inspires more of an emotional reaction,” she said. “They are looking for value. They’re looking for quality at a price.”

“Back-to-School Shoppers Focus on Necessities” (New York Times)

QUEENSBURY, N.Y. — It was the day before Libbie Palmer began school, and her mother, Becky, was taking her shopping for one last thing at the Aviation Mall here in the Adirondack foothills. “I realized I didn’t get her a pair of shoes,” Ms. Palmer said.

Libbie, 12, was comparing three pairs of marked-down J. C. Penney sneakers — she chose the $19.99 ones patterned with skulls — as her mother spoke of buying “a little bit less” than last year.

“The only thing we really look at is sales,” Libbie piped in.

Across the country, families say they have trimmed what little fat there was in their back-to-school budgets. The tightening has been an unexpected blow to many retailers, who had bet that consumers would be spending again and that the school season would be fuel for an industry turnaround.

Instead, sales figures have been disappointing and awkward scenes have been playing out at checkout counters, as parents and children tussle over wish lists, coupon items get substituted for full-price ones and necessities like underwear and socks take priority over graphic T-shirts and designer jeans.

“Shopping Habits Shift” (NWAonline)

Dollar Stores Gain Momentum During Recession

More consumers are looking for ways to stretch a dollar as they receive fewer raises and the cost of living continues to rise.

Shopping habits shifted during the recession to dollar stores.

Jill Haverkorn of Springdale said last week her shopping habits have changed a lot since the recession began. She was at the Family Dollar on Elm Springs Road in Springdale.

The store opened in April 2009.

Discount retail chains are expanding in the area with the Arkansas Department of Health approving five stores – one Family Dollar and three Dollar Generals – this year.

“No-Frills, Low Prices at New Grocer” (Miami Herald)

A new low-price grocery chain is moving into South Florida. Aldi will start opening stores in November in Broward, with plans to move into Miami-Dade.

If you’re willing to give up your Diet Pepsi, Cheerios, Smucker’s Jam and most brand-name food items, there is a new supermarket chain coming to South Florida that can cut as much as 40 percent off your grocery tab.

For those budget-conscious shoppers that answer yes, the South Florida arrival of the Aldi grocery store chain might be just the relief necessary in today’s economic times.

The limited assortment grocery store, which carries almost exclusively its own brands in a no-frills environment, will open its first three stores in South Florida in November and December.

The openings in Pembroke Pines, Deerfield Beach and Lauderdale Lakes mark the kick-off of Aldi’s South Florida expansion and the continuation of a move into Florida that started in 2008. Miami-Dade comes next year, with another seven stores in the works stretching from Cutler Bay to Miami Gardens and Delray Beach.

While Aldi’s arrival isn’t likely to mark a seismic shift in South Florida grocery shopping patterns, it will offer an alternative.

“They absolutely appeal to a consumer who is looking for the basics at very low prices,” said Neil Stern, senior partner with McMillanDoolittle, a Chicago-based retail consultant. “In a tough economy, people are more inclined to try somewhere else to save money.”

Retailers have seen a resurgence in private label brands during the recession and Stern sees Aldi benefiting from that trend. “Their message is well understood in tough times.”

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