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Restaurants, Retailers Gulp as Consumers Tighten Belts  

Posted Apr 27, 08 11:46 AM CDT in US,  Business    Most Covered

(newser) – The rising price of staples like milk and gas, coupled with layoffs and flat-lining wages, is creating a nation of penny-pinching consumers, the New York Times reports. Industry is taking notice as buyers substitute generic brands for top-of-the-line products and skip eating out at restaurants.

“It hasn’t gotten to human food mixed with pet food yet, but it is certainly headed in that direction," said one consultant. Comestibles aren’t the only market hit. Travelers are booking flights at odd hours to save money, and downgrading their hotel reservations. One retail corner oddly unfazed? Big ticket electronics. One shopper rationalized his $2,000 TV because “at least we can watch movies at home."

Source New York Times

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Restaurants, Retailers Gulp as Consumers Tighten Belts
The supermarket is often the locus of change in uncertain times.   (AP Photo/David Kohl, file)
Restaurants, Retailers Gulp as Consumers Tighten Belts
Many shoppers are opting for generic brands to soften the blow of a sagging economy.   (AP Photo/Nati Harnik, File)
Restaurants, Retailers Gulp as Consumers Tighten Belts
Shoppers tour the cereal aisle.   (AP Photo/Denis Poroy)
Restaurants, Retailers Gulp as Consumers Tighten Belts
The Consumer Electronics Show(CES) in Las Vegas, Monday, Jan. 7, 2008.   (AP Photo/Jae C. Hong)
Restaurants, Retailers Gulp as Consumers Tighten Belts
Best Buy, the nation's largest consumer electronics retailer, reported second-quarter profits that rose 8.7 percent, well ahead of analyst expectations.   (AP Photo/Paul Sakuma)
Restaurants, Retailers Gulp as Consumers Tighten Belts
An shopper looks over the price sticker of an unsold SUV.   (AP Photo/David Zalubowski)
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US economy  • recession  • consumer spending  • food prices  • fuel prices  • supermarket  • discount hotel room


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