In a recent article about dollar stores and the recession,  the New York Times reports that dollar stores seem to be thriving. According to the Times,  “the nation’s dollar stores, those once-dowdy chains that lured shoppers by selling some or all of their merchandise for $1, are suddenly hot. They are busily opening new stores, outfitting existing stores with refrigerators and freezers, and sprucing up their aisles with better lighting, fresh paint and new signs.”  The article goes on to note that Dollar General, Family Dollar and Dollar Tree have all opened new stores and have plans to open more stores in the next year.  In addition, these dollar stores are now offering more grocery items (some stores even have frozen food sections) and household necessities in an attempt to attract new customers and poach business from traditional grocery stores and larger retailers.

Shoppers interviewed in the article mention both the low prices and the appeals of a smaller store – less crowded, easier to find what they want, better customer service – as reasons for shopping at the dollar store.

Has the current economy impacted where you shop? Do you find yourself shopping for any items at a dollar store? Why or why not?

Katy consumption, culture, economics, lifestyles, shopping consumption, economy, recession, shopping

In an an article at Forbes.com, John Zogby looks at how  Americans use credit, and concludes most are living within their means. Here is some of what he wrote:

According to a recent CardTrak.com survey of 55,000 consumers, 13% of Americans have credit card balances of more than $25,000.

Have we lost our way when it comes to credit? Now celebrating my 25th year as a pollster, I’ve learned to read statistics with a bit of dyslexia, taking a look at them backward and upside down. So I discovered that almost half of that 13% were people who could well afford to carry that much credit card debt–which meant to me that approximately nine in 10 Americans were living within their means with regard to credit card debt. The real truth here is that most Americans are living their lives modestly, but this does not make a dramatic headline.

But Americans have bought into the misconception that most of us are overextended. Taking into account a household’s overall financial picture, a Zogby Interactive survey conducted in March 2008 found that 79% of Americans believe they themselves live within their means financially, given their current personal financial situation.  This same survey found that 87% believe that most other Americans are living beyond their financial means.

This country is moving away from overspending and overuse of credit. Surveys since the recession began show Americans modifying their expectations even more. An annual survey held during the holiday shopping season showed 71% planned to spend less due to the weakening economy. Once the economy turns–and it will–look for less binging and less demand for 0% APRs today that turn into 32% APRs tomorrow.

Do you overextend your credit card? Do you agree that in the future, people will be less likely to overspend on credit?

Paul John Zogby, consumption, economics, shopping economy, future, John Zogby, polls, recession, shopping, war, zogby

We at Zogby always have a few questions on our surveys that you probably won’t find  anywhere else. While we (and most other surveys) always ask about age, income, gender, racial background, and  other basic demographics, we also ask about things like whether the respondent is a NASCAR fan and whether the respondent considers himself or herself a citizen of their town, their country, or the planet earth.  Another unique-to-Zogby question we ask has to do with how often survey-takers shop at Wal-Mart – weekly, a few times a month, one or two times a  year, or never. Our Wal-Mart question frequently provides us with interesting and unusual data, some of which shows up on this blog. We’ve posted previously on the  differences between Wal-Mart and Target America , and written about where people would shop if they could only shop at one store for the rest of their lives,  the relationship between vote choice and favorite store, and favorability of Wal-Mart compared to favorability of Target.

Wal-Mart has been in the news recently for weathering the recession better than many other retailers, perhaps because their low prices are attracting new customers who might be conscious of price for the first time.  A recent NY Times article about the chain notes that “Wal-Mart once again proved itself the chain best able to capitalize on the new frugality” and that “Wal-Mart exceeded analysts’ expectations”.  Another article in the NY Times mentions that a goal for Wal-Mart is to “hang on to its millions of new customers for the long haul” . The article quotes a retail analyst claiming that “wealthier customers are rediscovering Wal-Mart. .. no one is feeling as rich as they used to. All of a sudden, Wal-Mart looks a lot  better.”

Our own data support the idea that frequent Wal-Mart shoppers  can be found in every income group surveyed, and  not just in lower and lower-middle income groups. In an interactive Zogby poll of all adults taken in February of this year, 56.7% of those with a yearly household income between $50,000 and $75,000 shop at Wal-Mart either weekly or several times a month. Also fitting our definition of frequent Wal-Mart shoppers are 53.1% of those in households making between $75,000 and $100,00/year, 55.7% of those in households making under $25,000/year, 55.5% of those in households making between $25,000 and $35,000/year, and 60.2% of those in households making between $35,000 and $50,000/year. In fact, the only income group where frequent Wal-Mart shoppers are outnumbered by infrequent shoppers and those who never shop at Wal-Mart  are those in households making over $100,00/year – only 29.6% of this group shops at Wal-Mart weekly or several times a month.

Has the nation’s struggling economy caused you to shop more than usual at Wal-Mart? Is there something other than prices that affects your decision to shop or not shop at Wal-Mart? If you never or only rarely shop at Wal-Mart, under what circumstances would you consider shopping there more ?

Katy consumption, culture, economics, lifestyles, shopping economy, recession, shopping, Wal-Mart, zogby

A recent article in Newsweek magazine poses the question:  is the mall dead? The article notes that last year was the first year in half a century where a new indoor mall did not open somewhere in the country.  Others write that fast-growing “lifestyle centers” – open-air developments that contain some mix of shopping, office space, entertainment,  outdoor parks, recreational facilities and housing – are replacing  regional and local malls as the new shopping destination of choice. And another recent article in New York Times article  implies that the waning fortunes of shopping malls are the fault of worried consumers unwilling to spend money.

However, the Newsweek article lays some of the blame for traditional malls’ decline on anti-consumption, pro-environment, and fair labor sentiments held by the public. They report that 40% of young shoppers prefer to purchase items that are “socially conscious” –  ie, environmentally safe and produced through fair labor – and that traditional malls have little to offer that fits this description.

Do you think the rise in the anti-consumption and pro-environment attitudes detailed by Newsweek is responsible for the decline of shopping malls, or are factors like the growth of lifestyle centers and internet shopping more responsible? Does consumers’ economic uncertainties mean that all shopping centers (and not just malls) are likely to close or have economic difficulties soon?

Katy consumption, lifestyles, recreation, shopping consumption, entertainment, environment, internet, lifestyle, recreation, shopping