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

[SpiralHawk]

1. New paradigm in the Republicon recession

"Smirk. Too bad there's nothing left for you little people. Smirk." - Fatcat republicon homelander cronies

[damntexdem]

3. A chickenhawk in every plot.

[damntexdem]

2. Depressions do that.

[NightWatcher]

4. As the Good Doctor said, "We are all wired into a survival trip now."

it's a struggle everyday for more and more of us and the pipe dreams of retiring wealthy have been replaced with the realization that we must try to survive another day longer and perhaps things will get better.