At Financial
Armageddon, I focus on telling it like it is, so naturally
that means most of what I have to say these days leans towards the negative. That
said, it's not all gloom-and-doom. Below are snippets from recent news
reports that highlight a few bright spots in an economy that still faces a
heap of trouble:
Generic
and second-tier brands, and stay-at-home alternatives:
"Dollar Stores Enjoying Boom Times" (Loudoun Times-Mirror)
The worse the
economy, the better for retailers of deeply discounted items. Partly fueled
by higher-income shoppers "trading down," the popularity of dollar
stores has risen sharply since the current recession began in December 2007.
"RI Coffee Roasters Thrive in Recession" (Associated Press)
While many Rhode Island businesses struggle during the recession, the state's coffee roasters are
percolating.
The roasters, who
turn out small batches of gourmet coffee beans, tell The Providence Journal
that they are seeing an increase in business these days.
Ken Marot of Taylor's Landing, a coffee roasting house and cafe in West Kingston, says he's been
pleasantly surprised to see his customer base grow.
Bob Mastin at Custom
House Coffee in Middletown says he just added a second roaster to his cafe
and wholesale business.
Mastin says even when
people are watching their money, they want a quality cup of coffee.
Rhode Island roasters attribute
their resilience to other factors, such as people wanting to save money by
brewing their morning java at home.
"Private Labels Booming in These Tough Times" (Telegraph-Journal)
Penny-pinching
shoppers have prompted a boost for discount goods businesses and cuts into
sales of popular brands.
For Dieppe-based
Irving Consumer Products Inc. this has meant increased demand causing record
production levels.
The privately-held
company is seeing increased sales in paper tissue, towel, diaper and private
label brands it makes.
"Naturally in
this economic climate the consumer looking at options starts looking at
trading down," says company vice-president of sales Bob Tinnish.
The company's growth
is strongest south of the border where there is more potential for store
labels to gain market share from big brand names.
"Luxury Wine Market Reels from Downturn" (Wall Street Journal)
Many of America's high-end wineries are reeling from the economic downturn, as even wealthy
drinkers slash spending on fine wines.
The slump comes as Americans
continue to drink more wine overall. Recession-weary consumers, however, are
buying more mid- and low-priced wines, causing a sharp falloff in sales of
wines priced at $25 a bottle and higher.
Matchmaking
and dating:
"Love Sites Booming in Tough Economy" (WCBD)
Times are tough, but
you still have to live, laugh, and sometimes fall in love, right?
That philosophy is
causing quite a boom in the matchmaking business.
Christie Nightengale
is the owner of Premier Match in Philadelphia. She thought when the
economy started tanking, her business would too.
“We never saw a
drop. If anything we saw an increase. We closed the year with
record numbers. The best we’ve ever had,“ she says.
"Downturn Dating: Hearts Flutter as Markets Stutter" (Associated Press)
Credit the recession
for "staycations" and bringing us more game-night parties at home. But
also give it a shout for spurring more first dates.
Economic woes, it
seems, unleash something practically primal in many of us who find ourselves
without a partner: a hard-wired desire for companionship.
Some singles are now
hunting for dates with the same fervor others are showing hunting for jobs. On
matchmaking Web site eHarmony.com, membership is up 20 percent despite
monthly fees of up to $60, and activity has soared 50 percent since September
at OkCupid.com.
It's not just the
frequency of our dates that's changing — it's also the people we're
choosing to spend time with.
"They're looking
for something that's genuine in a world that isn't very secure," said
Bathsheba Birman, co-founder of the Chicago dating event Nerds at Heart. "With
headlines full of why you can't trust established institutions that you
thought you could ... people are re-examining their own values."
Attendance at the
monthly gatherings, where mostly young professionals pay $25 for a drink and
a chance to spend the evening clustered around trivia and board games —
was more than double expectations in April and has stayed high since.
"Misery loves
company, especially if the prospect of romance and or sex looms large,"
said Craig Kinsley, a neurologist at the University of Richmond. "Really,
dating, rather than being considered as expensive, can be a thrilling and
inexpensive distraction. Like getting drunk without the wallet-hit or
hangover."
Arts
and entertainment on the cheap:
"Business
Is Booming for Artists at Summer Festivals" (KVAL)
EUGENE, Ore- Several artists at
the festival said they don’t have stores and sell most of their work
online. But during the summer many travel from city to city selling their
artwork at festivals.
They said traveling
to festivals gives them an opportunity to showcase there talent with others.
“The
opportunity to come out and interact with people, show them my work and get
feedback helps inform the next piece. It lets me know what I’d like to
create next,” said Jason Johnston.
Johnston does bronze cast
figurative work. His sculptures feature sports figures and represent the
human condition. He said business has been good for him during the recession.
“Last weekend I
was in Lake Oswego just outside of Portland and as far as I could tell there
is no recession in Lake Oswego. All the artists were doing great,” said
Johnston.
"Gaming and Used Sales Boom During Recession, Says
Nielsen" (PC World)
Time spent playing
games and used game purchases are up, and in fact way up over the past
several months, says the Nielsen Company. Citing a new study that gauged
game playing and purchasing habits during the recent recession, the media
audience tracker said the number of hours gamers claim to be engaged is at an
"all time high," while the purchase of used games and video game
rental service have both increased to "record-breaking" levels
since tracking began in 2006. The conclusion? When it comes to entertainment,
consumers are opting to get more from, well, more.
"Recession's
Upside: Family Game Night" (Pittsburgh
Post-Gazette)
Many parents are
cutting spending on vacations and lavish toys, but spending more on board
games for home
At Katie Pugh's
house, the kids don't ask to play Guitar Hero or watch yet another princess
movie after the family eats dinner.
Instead, her
6-year-old son, Jake, and 3-year-old daughter, Josie, are thrilled to play a
board game before bedtime.
"They're way
into it," Ms. Pugh said. "They ask for it every day."
So the Pughs break
out Chutes and Ladders, Hullabaloo or Guess Who? at least three nights a week
-- and sometimes during the day, too, said Ms. Pugh, a third-grade teacher in
the Steel Valley School District. During her summer days at home in Munhall,
a board game can be an easy alternative to messy arts and crafts projects.
"It's a
low-energy, quick-cleanup, fun way to spend your time together that allows
you to talk through things and get some educational value out of it,"
said Ms. Pugh, who started playing Cranium Hullabaloo, a color- and
shape-classification game, with her son when he was about 18 months old.
Like the Pughs, many
families with young children have begun embracing what was a tradition in
their parents' and grandparents' homes: family game night. Hemmed in by
financial pressures, many parents are cutting spending on takeout, movies,
vacations and lavish toys, but are spending more money on board games they
can play with their children at home.
The toy industry has
seen spending drop by nearly 2 percent since April 2008 -- with youth
electronics and vehicles showing particularly steep drops of 12 percent and
13.5 percent, respectively. But sales of board games have increased by nearly
5 percent during that period, according to researchers at The NPD Group.
Job-hunting:
"Recession
Is a Boon to Image Consultants" (Democrat and Chronicle)
Three years ago,
Paula Vullo sold her business and went back to school.
She got a
master’s degree from Rochester Institute of Technology, but as she was
getting ready to re-enter the work force, the economy tanked and suddenly
jobs were scarce.
Wanting an edge, she
called image consultant Cindy Kyle.
“I had a few
friends comment on my hair, that it had grown out really long, and I never
paid much attention to color and how to put accessories together,” said
Vullo, who previously owned the Hospitality House, a banquet hall in
Penfield.
“I knew some
people that (Kyle) was coaching and I heard she had some success stories, and
I thought: ‘Gee, I need a different approach.’”
A tough economy means
more well-qualified people like Vullo are looking for jobs, and some of them
are calling image consultants. Kyle said the portion of her business that
deals with individuals has increased 50 percent, and other image consultants
have also seen a boom among their individual clientele.
"Recession
Camp: You Didn't Sign Up for This" (KOMO)
SEATTLE— To attend
Recession Camp, you don’t need a permission slip from your parents, or
your name sewn into your underwear.
The free and cheap
daytime activities are designed to bring summer camp-style socializing to
unemployed adults.
“The point is
to get people away from their PCs and the stress of job searching for awhile
and do some relaxed, low-key networking,” said organizer Maryse
O’Neill.
O'Neill is a
job-seeker, too. In May, the day after she was laid off from her job in IT
management and process improvement, she asked her friend Andy Brenner, who
started a Bay Area recession camp in 2001, if she could follow his lead.
“I wanted to do
something that wasn’t those stressful networking sessions where
you’re marching around, doing your elevator speech,”
O’Neill said.
Instead of name tags
and no-host bars, recession campers have met with their dogs for walks at
Greenlake and Marymoor Park and gathered for a free architecture tour
sponsored by the Seattle Architecture Foundation.
The Foundation
offered the tour as a sort of “dress rehearsal.” Tour organizers
got to work out the kinks, and participants got to go for free. Future events
include a trip to hear a free lunchtime concert downtown, and whatever other
campers want to organize.
O’Neill, who
describes herself as a natural networker, said she has gotten two job
interviews through Recession Camp connections, which she promotes through
LinkedIn, Twitter, and Facebook. She’s also collected contacts for
other people and believes that cooperating, rather than competing with fellow
job-seekers, builds “networking karma.”
Michael J. Panzner
Editor, Financialarmageddon.com
Also
by Michael J. Panzner
Michael J. Panzner is a
25-year veteran of the global stock, bond, and currency markets and the
author of Financial Armageddon: Protecting Your Future from Four Impending
Catastrophes, published by Kaplan Publishing.
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