Mar 29, 2009

Consumers still buying, just differentlyBy TradingMarkets.com

Even given the nation’s recent economic downturn, customers are still going out and shopping. They’re just not going out as often, and they’re looking for bargains, store owners say.

“We have customers that come in all the time. They’re not going for the higher-priced stuff anymore,” Kelly Parker, the manager of Finish Line at Viewmont Mall said.

In the past, when the new Nike Shox came in, for example, they sold out at full price, he said. This year, after only two months on the shelves the prices were slashed from $109.99 to $79.99 on some pairs. But shoes sales weren’t completely stagnant. A new line of shoes by Under Armour, whose prices started $10 to $20 cheaper than the Nike Shox, were proving a popular alternative.

“People are trying them on and saying, ‘I’ll take ’em,’ ” he said.

Sale prices have also been enticing customers at Pearle Vision in the Mall at Steamtown. In January, a new manager initiated a “buy one get one” deal on frames with prescription lenses, said Kim Hicks, a certified optician.

Now sales are up. Unlike in shoes, people are not shying away from the designer brands to save money, she said. “They don’t skimp on eyewear,” she said. “They want what they want.”

Americans’ spending did rise in January, as did their incomes. Consumer spending rose 0.6 percent, the first increase since June, according to the Commerce Department. The department also announced a 0.4 percent rise in personal income, mainly because of a boost from the cost-of-living adjustment to Social Security and government wage increases kicking in at the beginning of the year. Analysts, however, warn the increase is not a sign the recession is improving.

However, one retailer that continues to do well during the recession is the Salvation Army, which sells used clothing and furniture in its thrift stores. Business is up this year compared to last, said manager Faith Andrejack.

“I’ve been seeing new faces,” she said. “We’ve had an upswing since the pocketbooks are tight.”

Business at Anthology Books, Scranton’s only used bookstore, was stronger this past holiday season than last year, said managing partner Andrea Talerico. But, because she opened in October 2007, she’s not sure whether people are looking for used books as a response to the economy, or whether it’s due to more people knowing about the store.

Attendance at the store’s events has surged, she said.

“A lot more people are coming out to the book groups,” she said. “It’s a really cheap event. People can borrow a book (at the library) or get a new book at a discount,” she said.

At Borders Books in Dickson City, Jane Cernek of Honesdale was shopping for novels by her favorite horror author, Stephen King, and by his son, Joe Hill.

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