- Kids stuff. Parents cut back on things for themselves before they deprive their kids, so kids stuff is cut out last. The caveat on this: within this category, unnecessary kids stuff like toys and luxury brands are dropped in favor of practical things, like well priced clothing and educational items.
- Home stuff. People spend more time at home, so home furnishing stores and decorators apparently do well. If you're not going out as much, and I'm certainly not, it makes sense to make your home a little more livable. If you're unemployed, you're spending more time at home too.
- Hobby stuff. Similar to home stuff, hobbyists, if their hobby isn't too costly, tend to continue spending. The "lipstick effect" basically says people will continue to treat themselves, but with less expensive items.
Sunday, January 11, 2009
Retail that Works
Listening and reading retail news reports, what seems to work in retail during a recession is: