Opening a Goodwill store in the same ZIP code as hundreds of well-respected retailers such as Macy’s and Lord&Taylor would have been a sure failure just a few years ago. But in the wake of the Great Recession, one such store in a middle-class New York suburb has proved that things are different now. Shoppers no longer think of shopping at secondhand stores as low class – rather it is something to be proud of. The trend has become so popular that some high-end retail stores are even dedicating parts of their stores to secondhand goods as a way to offset decreased sales of their full price merchandise.
Shopping at secondhand stores isn’t the only money saving strategy that has become popular. Shoppers at grocery stores are turning to store brands to save money and are finding that the savings more than make up for the lack name brand. This search for additional value has also led consumers to fast-food restaurants. And it’s not just consumers in lower income brackets. Research from American Express, found that consumers that put at least $7,000 a month on their credit cards have increased their spending on fast-food by 24%. Evening paying for items on layaway has lost its stigma.
After losing popularity with rise of credit cards in the past two decades, paying for big-ticket items on layaway has made a comeback as well. At eLayaway.com, customers can buy things like iPads and tickets to sporting events and pay off their purchases over time. What is surprising is that over 40% of eLayaway.com’s customers have an income above $60,000. This is up from just 8% before the start of the recession.
Have you changed your shopping or spending habits since the recession? Tell us about it in the comments section.
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As a college student, my personal spending habits have not drastically changed during the last few years; however, I would say I have cut down on eating out and worked on prepping my own food from the grocery store.
ReplyDeleteI wonder what sort of implications this has on imports. If we substitute away from new-goods consumption toward recycled goods, then it will decrease our demand for imports from countries like China. It probably isn't very significant, but it might be. Also, it might have interesting effects on GDP. Since used goods do not get counted toward GDP, increases in Goodwill sales will not be be reflected in it. So the flow of currency will be misrepresented.
ReplyDeleteI haven't cut back my spending too much, but I am getting a bit paranoid about inflation. I've been trying to do the adult thing of saving 10% of my income and I'm worried the savings will devalue at a rate greater than the interest being earned. I'm considering taking what little money I have in my savings account and putting into more (hopefully) inflation resistant commodities. I realize this hurts us because there will be less money for the banks to lend and invest, but gotta look out for #1, Trev!
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