'Recession chic': Embrace tough times with style
Jerry Epperson -- Furniture Today, May 26, 2008
Are we in a recession? If you honestly believe the first quarter's Gross Domestic Product grew an underwhelming 0.6% as reported, then we will have to wait to see if the June and September quarters are negative, so say the statisticians.
Ask any warm-blooded American consumer who is paying $4 a gallon for gas, seeing food prices explode out of reach, is able to either read or watch television and they will confirm without a doubt that the U.S. is in a recession. The furniture industry has been in a decline for about 22 months, so it would be easy to get agreement here as well.
The only question now is, will it be short and shallow like the 1990–1991 or 2001 downturns which lasted eight months, or long and deep like the 16-month recessions the U.S. experienced in 1973–1975 or 1981–1982?
In any case, if enough consumers believe we are in a recession, we are. You can argue that GDP has not declined and unemployment is still at relatively low levels, but no one cares. Everyone is in recession-mode.
Time magazine recently speculated that the housing mess and contracting credit will inspire Americans to live within their means. Imagine! Who wants to wait until you can afford it to buy something?
Kiplinger recently stated that auto repair shops are booming because consumers are putting off buying new cars and that campgrounds, rental homes and state parks are prospering at the expense of vacation hotels and resorts.
WSL Strategic says women are not only going on fewer shopping trips per week (3.6 in 2008 vs. 3.9 in 2006) but they are shopping closer to home.
Business Week says that shopping at Wal-Mart and Costco are very acceptable today for everyone, even the drivers of German luxury cars.
Techonomics has reported that more than a third of Americans are eating more meals at home, saving money and gas instead of going to the fancy trough-du-jour restaurants.
The New York Times recently reported that Home Depot, Best Buy and Circuit City have adopted an "entrepreneurial spirit," allowing salespeople to haggle over price to retain customers. Who do they think they are, furniture stores?
What we need to do is embrace "recession chic," even to the point of offering dark colors (especially black) like some apparel designers say sell best in recessions.
Consider offering "recession specials" featuring special purchases from your suppliers. Vaughan-Bassett used to offer "barn burners," and maybe we all need them today.
