For the first time in months, the grocery store was crowded when I went shopping. This is a change. Even on Saturdays stores hadn’t been crowded. This time, a Wednesday night, the store was crowded and not just because there weren’t enough cashiers. There were several cashiers, and even the self serve lanes were open. To me, this is a greater indicator that the economy is picking up again. People are not only buying food, but a significant amount that will make the lines long.
The 20 plus people deep line at the library a few days earlier really showed me that things weren’t really improving economically. When consumers are comfortable spending they will buy their own books, dvds and cds. When things aren’t they go to the library and look for other forms of free entertainment.
Even though the grocery store was crowded, it will still take a long while for consumers to feel comfortable buying extras. Food isn’t an extra but for some reason grocery stores also took a hit in the economy. Lowering prices did seem to help.
The lines at the libraries will continue to be long until more finding is added for additional clerks. When the libraries were slow two clerks could handle the job with ease, now that people are able to get the latest releases for just the cost of waiting the stacks have become the hip place to be.
Retailers are pairing down some things in addition to prices to try to salvage their businesses. Maybe people didn’t need 12 varieties of everything, if they did, they would go to a specialty store. Though since the consumer is now king and aren’t buying what they used to, retailers are being forced to pay close attention to what sells and what doesn’t. Coupons, sales, and fewer choices are becoming the norm as retailers are trying to maintain a foothold in this new
The changes are likely to last for years. Even when the economy improves, it will take years before the debts that piled up during the decade-long shopping spree are paid off. Americans are also getting used to their newly adopted frugal habits of saving more and spending less.
“I don’t think we are going to go back to business as usual,” said Steve Sadove, chairman and CEO of Saks Inc., operator of Saks Fifth Avenue.
