Aug 25, 2009

The New Normal: Shoppers Aren’t Spending Like They Used to, and May Never AgainBy Anna KingKUOW.org

The recession has created a different kind of shopper and that’s having a profound impact on retailers including ones in the Northwest. This week we’ve been airing a series called “The New Normal.” We’ve heard about the transformation going on in real–estate and the home construction business. In the third, and final, part of that series, we look at retail sales. The latest numbers say retail spending is still down, despite President Obama’s stimulus money and the popular Cash for Clunkers program.

Rose: “Designer inspired styles — see I can look like a designer but not pay for it.”

We’re here with Greg Rose at the Columbia Center Mall in Kennewick, Washington. The rushing sound is one of those indoor fountains. Rose is looking over sunglasses at one of those little kiosks in the center of the mall.

Rose: “So there is actually a pair that I tried on that l thought looked pretty sweet. Are these cool?”

Rose is 27 and a door–to–door salesman. After the market crashed, he decided to become a nurse. And he’s being more careful with his money. A few years ago, Rose says he would have bought the real designer sunglasses, now he’s getting imposters.

Rose: “Probably the biggest difference is now it’s a little more regimented. Now maybe we’re not going to be able to go out for dinner tonight. Let’s save that money kind of a thing. Before it was like a party. Let’s go out, let’s go eat out every night. Now that’s changed.”

There are a lot of people like Greg Rose. Shoppers across the country are buying less expensive clothing and fewer items altogether.

Jennifer Black is a well–known retail analyst and consultant based in Lake Oswego, Oregon. For a long time now, as she puts it, matchy, matchy hasn’t been cool. And now Black says the recession gives shoppers an even bigger incentive to mix items.

Black: “Instead of for example buying Abercrombie jeans, an Abercrombie sweatshirt and an Abercrombie polo, maybe they are just going to buy a sweatshirt and buy a pair of jeans at JC Pennies.”

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