Slow, Veeeery Slow…
I did a post like this before, and got some criticism because it was “ad hoc” and not generalizable to the economy as a whole. Fine, I admit that. Let me tell you what I have been seeing.
My wife and I informally divide the duties of shopping. She does about 60%, and I do 40%. I like this, because it allows me to keep my feet on the ground as regards the economy. I may have a very traditional marriage, but this is one place where I want to have more play.
After playing “pickle” with my youngest four children (the oldest four were elsewhere), we went to Home Depot and Sears on Tuesday evening. We needed some gardening supplies and a few miscellaneous items. At the Home Depot, I saw three other customers. Compared to two years ago, I would have expected dozens (say 30). There were so few customers that we got instant help from staff (astounding), with the staff freely commenting that my two youngest (girls wearing matching dresses) were pretty as can be. (Aw, I think so too.) At Sears, we were the only customers there. It is a converted KMart, so maybe that makes a difference. The staff outnumbered us 3-1. The merchandising is far better than the old KMart, but the prices are higher as well. Even my children felt things were deserted at both stores. (For a homeschooler, this was time for a few basic economics lessons.)
The Wal-Mart near my house seems normal, and on weekends, above normal. The local Asian food market is more crammed than ever. I go there to buy produce and Asian specialty items. (Did you know that I am a decent cook?) I suspect it is the same as the Wal-Mart effect. As times get tighter, more people look for cheap deals. The prices at the Asian market are way below those of local competitors, but it is not as inviting, because the produce is of varying quality, the music is unusual to the average Westerner, and you have to be comfortable dealing with people whose first language is not English. I find it fun, but not everyone else does.
My wife’s favorite store, Safeway, is much slower. People are cutting expenses, even in relatively wealthy Howard County, and Safeway is suffering. They are offering far more specials than I am used to seeing.
But my biggest suprise was my local 7-11. I know that staff there pretty well, and they tell me that thiongs are a lot slower.
These observations were made over the last two months, and are fascinating to me. Just six months ago, the Home Depot had unchanged volume, but now it is considerably lower. Only places known for low prices have volume consistent with the past. What a tough retail environment.
April 1st, 20096:37 am at
Mom Blogs – Blogs for Moms…
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April 1st, 20096:41 am at
Like you, I’ve been “feeling the pulse” of the economy via store visits as well. Over the past week, I have visited a Home Depot and a Sears, both weekdays and late morning. I never shop weekends because of the crowds. Of course the crowds may no longer be there, but obviously weekends would be busier than weekdays. Home Depot was very slow and help outnumbered customers by far. The few customers I did see looked like well-off retirees looking for something for the house, and a few who looked like contractors. Sears had huddled groups of employees in two departments – barely customers, and good sales on what I needed. That in the largest mall in the area.
Indian grocers and a farmers market have gotten all my veggie/pulses/nuts/rice/dairy business in recent years as you cannot beat the prices. Especially in milk. Veggie quality varies as you said but you can be selective. This buying pattern has taken about 50% of my shopping dollar from the one supermarket in this town (we are a one-horse town still), since we never buy ready made and all foods are cooked from scratch.Another 20% or so of the shoppping dollar was diverted to WMT, where coffee and cleaning items, detergent etc are cheap. If I need gift wrap or a card, I get it cheap at a Dollar Store. (How can Hallmark sell these items for oodles anyway?)
I wait for promos on paper items which are abundant these days. I have had bad experience with Sears, Kmart and Walgreens and their weekly promotions: they do not stock enough of these items. Walgreens is epsecially annoying in that – I vote with my feet and though receiving rain checks, they would never stock the advertised item! Which made me suspicious (is it a bait and switch – bad store policy?) It has happened twice and I no longer shop there (fool me once, shame on me….)
Long story short: conventional supermarkets must be hurting as customers divide their shopping dollars, if my patterns are a guide at all.
April 1st, 20094:34 pm at
I live in Phoenix. During my last visit to Home Depot this past weekend the parking lot was packed and the store was very busy. I spoke to the store manager, and he told me that during March, his store was well above “plan” for the first time in six months. The garden section was very busy. At my local nursery, the owners told me that vegetable gardening is booming, and flower gardening is flat.
Our housing market is showing signs of turning around, as homes sales are starting to become quite brisk at the 100-250K price point. What a great time to be a first time home buyer in AZ.
David, I can’t picture you in a 7-11. Beer, smokes & lottery tickets????
April 1st, 20096:56 pm at
KK, Slurpees or candy for the kids when they are good. Wine occasionally.
April 1st, 20098:27 pm at
Yesterday I was at my local car repair facility. When I asked the manager how business was, he said it had changed. I asked what that meant and he said for the past several years, he would have repairs lined up for 3 or 4 days when he came in each morning. Now he usually has nothing when he comes in, but during the day tow trucks drop off cars that need a thousand or two thousand in repairs. Folks now delay preventive maintenance and run ‘em until the wheels fall off.