Posts Tagged ‘scrooge’
A Grinch Economy for a Scrooge Christmas
I suppose the North Pole can be excluded from the sour global economy because Santa operates through magic, not through the laws of supply and demand and economics. But with the recession here in the U.S. causing Black-Friday injuries and stampede-deaths, all eyes are on consumer spending through this 2008 holiday season. The contributing writers at the New York Times are already indicating lower sales numbers, suggesting the magnitude of the financial crisis that seems not even Mr. Claus is immune to. But I have faith in the American people.
When the going gets tough, the tough get going, as that old popular mantra goes, and in today’s sad state of the economy, it seems the tough are going to dscount scores like Wal-Mart to grab their stocking-stuffers. After all, it’s the thought that counts, right?
Coincidentally, I just so happened to finish my holiday shopping a few minutes ago, and although I won’t report on exactly how much I spent or where I shopped at, I will say that the thought of the recession and all its woesome fears affected me not in the slightest as I decided on which color sweater would look best on Dad. But I supposed I’m in the minority on this one.
Independent surveys have shown Americans plan to increase their average holiday spending this year by a slim 1.6%, despite consumer buying-power up 5% since 2007. Call it mentality; Americans are simply afraid to spend in this gloomy market. But spending is exactly what we need to jumpstart our economy and right its wheels again. History has also showed that when the going gets tough, the tough get cheap. In the recession of 1991, research companies reported 51% of people planned to spend less than they had the prior year, which lays claims to this year’s estimated low numbers. In addition, the reported fourth quarter retail sales during the holiday season in 1991 was a dismal +0.08% increase. Clearly, we retailers should be doing all they can to prepare themselves for what just might be a Scrooge fourth-quarter. Not even the Grinch would want to steal this sort of Christmas.
Gary Langer provides a great analysis of past, present, and projected consumer spending with regards to the holiday seasons on the ABC news website, here.
