MarketWatch: Consumers cutting back, and the pattern may be lasting

[marmar]

Economy forces major shift in spending
Consumers stay home and opt for frozen foods, Spam and crafts
By Jennifer Waters, MarketWatch


CHICAGO (MarketWatch) -- Wondering how consumers are coping in such a troubled economy? Look at what's selling instead of which sales are tanking.

As consumers muddle through all that is plaguing the U.S. economy, they have battened down the hatches and sharply shifted their spending habits, turning to money-saving options that run the gamut from transportation to health as they find ways to pay for dramatic increases in gasoline and food.

What emerges is a new paradigm of consumerism that some experts believe will live long after this economic crisis is resolved.

"Suddenly consumers are focused on buying what they have to have as opposed to buying what they want to have," said Howard Davidowitz, chairman of Davidowitz & Associates, a New York-based retail consulting and investment-banking firm.

"This is a permanent change for Americans, who will face a declining standard of living over the next 20 years," he added.

Consider this: Truck and SUV sales are losing air as quickly as a popped tire but hybrids and fuel-efficient car sales are holding their own. Sales of scooters, which can cover twice as much ground on a gallon of gasoline as America's favorite Toyota Camry sedan, are gaining as fast as prices at the pump.

Sales at department and specialty stores have been in the dumps for many months. But sales at drug stores and most deep-discount stores are in rally mode as more people opt for stores closer to home and those perceived as value giants. ......(more)

The complete piece is at: http://www.marketwatch.com/news/story/americans-enter-new-cycle-tough/story.aspx?guid=%7B2AD5D9FF%2D408C%2D443E%2DB295%2DF154C2DF194E%7D

[kestrel91316]

1. They are opting out of taking care of their pets' basic medical needs

from what I can see.

We are back to the bad old days of fire engine medicine, where the cat doesn't present until it is nearly dead and all I get to do is euthanize it.

[MasonJar]

2. So Walmart and Sam's Club get even bigger! Great--not! I am going

to continue to go to a small pharmacy and grocery to help the small businesses near me. It may cost a little more, but the produce is better and the service is too. I am also going to join Costco, which supports democratic cndidates. Please join me in boycotting the Walmarts of this world. Join Costco and go "blue" shopping.

[marmar]

3. I can proudly say that I've never stepped foot in a Wal-Mart or Sam's Club.....

..... Don't plan to, either.

[Indenturedebtor]

5. Costco isn't so bad

We get our more "durable" food items there. Saves us a lot of money. Veggies at the farmers market.

[marmar]

8. I've been to Costco.....and they seem to respect their employees better.

n/t

[Indenturedebtor]

10. They do, it's actually a blue company

However it's still a "supply side" company, and I'm sure you're familiar with the issues there.

[Submariner]

4. I used to think nothing of driving 125 miles from Boston to Cape Cod

to go to the beautiful National seashore park beaches. Now I go across town 9 miles to the Boston Harbor beaches (Winthrop Beach), in view of the lovely, but new, Deer Island wastewater treatment plant, to save about what would now be about $80 for gas.

It may not be the prettiest beach, but for an 80 buck savings I can close my eyes, hear the waves, and make believe it's the Cape.

[IDemo]

6. I have it on 'good authority' that the local Target is hurting

Very few customers, and many of those just there for clearance/closeout sales.

[gateley]

7. ",,buying what they have to have as opposed to buying what they want to have."

That's me to a T. I don't even consider things I used to think nothing of buying -- it's always "what do I need" -- and that's all I buy.

[The2ndWheel]

9. It's funny how we want everything, plus a cake

We want stronger community ties, but we also want the ability to be globally mobile. Seems like those two ideas clash fundamentally.

We hate outsourcing, but we love instant global communication. Not sure if you can have one without the other.

We're not fond of hyper consumerism and waste, but we can't get enough of cheap energy. The disconnect there is strange. The cheaper X is, the easier it is to waste it.

[Trillo]

11. Perceptual spin.

"This is a permanent change for Americans, who will face a declining standard of living over the next 20 years," he added.

This statement seems to be some kind of perceptual time travel. The declining standard of living has been ongoing over the last 30 years. Will it continue? Trends tend to do so, picking the turnaround point in advance is difficult.

What's assured, is that if it doesn't turn around and the trend of decrease continues, is at some point in the far distant future (or possibly sooner), more and more masses of hungry poor people will storm the castle walls. Those inside will survive for a time, but there their time too shall come.

~~~

As an adult teen, I used to tell my close friends that the U.S. was already a third-world nation well into decline, the problem was that most people just didn't realize it yet.