In the beginning of the economic slowdown business increased at resale shops. Customers were happy to save two-thirds or more off designer retail prices. However, with the economy in a recession customers were lured away by 80% off sales on new merchandise at malls. The Salvation Army – with 1,300 thrift stores across the country – saw sales drop for big-ticket items like furniture and saw donations drop10%. Goodwill also saw both sales and donations drop. Because of the poor economy stores long known for giving good buys are getting good byes.
As the recession continues, customers continue to take advantage of the good buys at McDonald’s. January 2009 same-store sales – sales at stores open at least 13 months – rose 5.4% in the U.S. Meanwhile Starbucks’ same-store sales for the fiscal first quarter fell 10% in the U.S. – the biggest fall yet. In order to have a more recession-friendly image, Starbucks has introduced its version of value meals. At U.S. company-owned stores customers can get oatmeal, a slice of coffee cake or one of two breakfast sandwiches – plus coffee – for $3.95. It seems restaurant signs have become signs of the times.
Another sign of the times is that more than a dozen states are considering primary seat-belt enforcement laws – meaning vehicles can be stopped solely for seat belt violations. Although the 26 states presently with primary enforcement average 13% higher seat belt use, that’s not the reason for the consideration. States that change to primary enforcement by June 30 and issue seat belt citations by September 30, 2009 are eligible for millions of dollars from a 2005 federal incentive program to reduce traffic deaths, medical bills and insurance costs. The money has to be spent on highway-related projects, but seat belts could be used for states’ belt tightening.
Belt loosening might be necessary since the Beer Institute claims that if beer consumption were averaged out, every American over 21 drinks more than 30 gallons annually. That makes the U.S. the world’s biggest beer market and that’s why Corona is building one of the world’s biggest breweries just across the Texas border. When all 4 production lines are running, the brewery will produce 7,200 bottles of beer a minute - enough to supply the entire U.S. market with its most popular, imported beer. Consumers are drinking less expensive brands; but if beer continues to be recession-proof, there won’t be trouble brewing at Corona.
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