Turning a Corner

By Sherri Collins

Editor, Pet Product News International

Been shopping lately? I don’t mean for the basics (food, necessary sundries and essential clothing), but “serious” shopping for fun things. Me either. And, according to the National Retail Federation (NRF), neither has most everyone else. Despite the numerous reports in the news that the economy is slowly turning a corner, the majority of people are still unwilling to shop until they drop. It’s a classic case of “show me the money.”

Consumers want solid evidence that our nation’s fiscal woes are finally evaporating before they’ll pour more of their hard-earned cash onto the market.

Yes, the stock market is doing better, but the labor market is still depressed, tight credit persists and companies, large and small, continue to file for bankruptcy. Thus, consumers lack the confidence to up their discretionary spending.

According to the NRF and the U.S. Commerce Department, this past April retail industry sales decreased slightly (0.4 percent) from March and were 1.7-percent lower than last year’s. Add in non-general merchandise sales (autos, gas stations, etc.) into that equation and the drop was 9.4 percent year-over-year—a statistic I’m sure both Chrysler and GM are well aware of.

There are glimmers of shinier times in the offing, though. Several market categories did better in April than in March, especially those that rely on good weather. Both garden and sporting goods saw slight improvements, as did health and personal care. In a year-to-year comparison, though, our spending habits have a ways to go before matching what we spent last year.

However, even though grocery spending declined slightly this year from March to April it increased over last year. Granted, everyone has to eat, but that small bump (0.5 percent) might be the first of many small steps toward a full-out spending run. Think about it, where is the easiest (and cheapest) place for you to splurge? A grocery store. Those extra-thick steaks you’ve been waiting for; that higher-priced bottle of vino, which will go so well with the steaks; those imported French cookies you’ve been drooling over.

The second easiest spending place (for me at least and I’m sure for other pet lovers around the world) is the pet supply store. Just last month I bought a new drinking fountain for my cats and several “high-priced” cans of never-tried-before food. Why? Well for one, I had a little extra cash and two, I love spoiling my cats.

If I’m typical of pet owners everywhere, things just may be finally looking up.

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