SALISBURY — Fearful that economic conditions could get worse and stay that way, Americans are showing an enthusiasm for thriftiness not seen in decades, bypassing the fashion mall for the discount chain store, buying secondhand clothes and furniture, or trading down to store brands.
Tom Newman, owner of Tom's Discount in Salisbury has noticed an increase in business ever since the gas prices spiked.
"People are looking for bargains," Newman said. "And we're not getting the recreational shoppers who used to come in and browse. We're a fun store to come to because we have a lot of different stuff, but people are emphasizing on what they need, like cleaners and clothes, rather than gifty stuff."
Candace Corlett, president of the consulting firm WSL Strategic Retail, said the economy has led to a whole reassessment of values.
"We've just been shopping until we drop and consuming and buying it all, and replenishing before things wear out," Corlett said. "People are learning again to say 'No, not today.'"
Betsy Hangley, owner of Gentry's Consignment in Newburyport said that for people who like to shop, it's hard to just give it up cold turkey, which is where consignment and discount stores come into play. Her shop has noticed a considerable spike in sales over the year, especially this month.
"For some stores, it's like gloom and doom," Hangley said. "Our business has been up considerably."
Hangley said the move of the 22-year-old store from the back of the Tannery to the front may have had something to do with the increased foot traffic, but thinks the economy is a large factor as well.
"Last week was the best week we've had in the 21âÑ2 years my husband and I have owned Gentry's," Hangley said. "Some of that has to be due to the economy."
The housing bust, credit crunch and stock market plunge have eaten away at the expendable money that consumers spent freely on new items and name brands. Unemployment hit a 14-year high of 6.5 percent this October, and families are being forced to bring their spending in line with their income and to rethink priorities.
"Because of the economy, there's another layer of people that have dropped," Hangley said. "They've started shopping consignment."
Hangley said in addition to the new faces, there's always the regular customers who come by the store weekly to see the new products. Just like many retail stores, Gentry's has a frequent buyer program, offering $20 off a purchase after spending $200.
The trend is evident in where cash registers are ringing, and where they are not. Goodwill thrift shops, Wal-Mart and BJ's Wholesale Club are thriving, while recent reports show Saks and Abercrombie & Fitch are struggling.
"For consignment, it's the perfect storm — you can get perfectly good clothes at a discounted price and about 95 percent of the consigners let the clothes that don't sell go to Community Action in Amesbury," Hangley said.
Wal-Mart said recently it has seen a 2 percent jump this year in shoppers from households earning at least $65,000.
Likewise, as casual dining chains like Red Lobster see fewer customers, McDonald's is serving more, including people who have given up $4 Starbucks drinks in favor of the fast-food chain's expanding coffee menu. Even Spam has made a comeback.
Retail sales fell 2.8 percent in October, the fourth straight monthly drop.
"The stigma has changed over time — people are beginning to find value in consignment stores. They're no longer called 'thrift shops;' now they're 'resale' stores," Hangley said. "Most people are shopping resale before retail. It's a way to get retail therapy at a really reasonable price."
— Material from the Associated Press was used.
