NEWS FLASH: we’re in a recession. News of missed earnings and layoffs is swirling all around us. And a friend of mine just hired maybe the world’s most overqualified intern – a seasoned professional who’s been out of work for a year, can’t find a job, and has decided to gain some new skills (and work for FREE) while he looks for full-time work … It’s enough to make me hoard every dollar I make. And maybe set up a lemonade stand in front of the house.
But, while retail sales are universally down, we haven’t stopped spending altogether. Forbes recently published a list of the 10 Things We’re Still Buying, which range from the expected (car maintenance, personal care items, sensible shoes) to the “Wow… really?”
A lot of spending falls into the category of “affordable escapism” – things that help us get away, even if just virtually, from the stresses of a rough environment. Movie ticket sales are reasonably healthy – theaters made $9.8 billion in 2008, up 2 percent from 2007, according to the Motion Picture Association of America. Even with ticket prices soaring (and let’s not even TALK about those concession stand prices), going to the movies still ranks as one of the cheapest nights out you can get.
As for a great night in, more and more consumers are discovering my personal favorite thing – Netflix. The online DVD rental company just defied gravity by posting a 45 percent increase in profits as spend-weary consumers seek inexpensive, at-home entertainment.
And (good news for my industry), people are investing in technology. Smartphone sales were up 53 percent from 2007 to 2008. Video games and consoles are still doing well; together, “Madden NFL ‘09″ and the “Wii Fit” sold 5 million units in the third quarter of 2008. And Q3 2008 netbook sales were up 160 percent over the same quarter in 2007. (Of course, a very low-tech, tried-and-true form of entertainment is also proving successful in the recession - building block sales jumped 30 percent from October 2007 to October 2008).
For those who still have a few disposable dollars laying around, now is a fantastic time to actually get away, as in vacation. With tourism down, the travel industry is cutting rates drastically. As one Associated Press writer reported, “[I] recently booked a Waldorf Astoria suite in the Palm Springs, Calif., area through Priceline.com for about $130 after taxes — in the middle of a holiday weekend, no less. Although we didn’t know where we’d end up, the 900-square-foot “Spa Villa” where we ended up staying is listed next weekend for $679 a night.”
Now that’s what I call affordable escapism.
