Shop Talk
Retailers, consumers and prices
The Do-It-Yourself Lift
The recession is leading many consumers to sharpen their do-it-yourself skills, opting to work on their cars and homes themselves rather than hire professionals.
Home Depot said it is gearing up for spring with a wide assortment of lawn equipment and fertilizer products, looking to cash in should consumers cancel their contracts with professional landscaping companies.
The company said some consumers in cold-weather climates bought snowblowers in the fourth quarter, opting to clean their own driveways and save money instead of calling on snow-removal services.
“We wonder if that might not happen in the spring in the garden business,” Chief Financial Officer Carol Tome said in an interview. “If that were to happen, we’ll be ready with a broad assortment.”
Home Depot, which posted better than expected results for the fourth quarter adjusted for charges on Tuesday, gave insights on how its consumers are spending. During the fourth quarter, it said purchases of $500 or more fell in double-digit percentages. But average purchases of less than $20 fell only about 3 percent, suggesting consumers are still spending on basic home repairs.
“Consumers in general are being pretty careful,” Tome said. “We’ve seen savings rates increasing so that will impact consumer spending, too.”
While the rate of sales declines in hard-hit housing markets such as California and Florida has eased, Home Depot is not yet ready to say weakness in those states has hit bottom. Now, malaise has spread to areas that used to be more solid. For example, sales in the Ohio Valley and Pacific Northwest have softened considerably, Tome said.
Starbucks drops the axe — is your store next?
California, Florida and Texas — the states with the biggest populations and the most Starbucks outlets — are losing the most stores as the coffee chain slashes more than 600 stores in a bid to boost slumping U.S. results.
While big states are losing the most, few markets — even Starbucks’ hometown of Seattle — are immune.
The axe is coming down everywhere, from Manhattan’s cityscape and California’s beaches to the downtrodden Motor City and burghs in the U.S. heartland, according to a store closure list released by Starbucks.
Here’s a state-by-state list of closures:
Alabama 12 Arkansas 8 Arizona 1 California 88 Colorado 9 Connecticut 5 Washington, D.C. 1 Delaware 1 Florida 59 Georgia 13 Hawaii 5 Iowa 7 Idaho 2 Illinois 25 Indiana 23 Kansas 3 Kentucky 6 Louisiana 13 Massachusetts 7 Maryland 12 Maine 2 Michigan 18 Minnesota 27 Missouri 17 Mississippi 7 North Carolina 10 North Dakota 4 Nebraska 7 New Hampshire 1 New Jersey 5 New Mexico 4 Nevada 18 New York 39 Ohio 9 Oklahoma 15 Oregon 6 Pennsylvania 21 South Carolina 1 Tennessee 13 Texas 57 Utah 4 Virginia 5 Washington 19 Wisconsin 6 West Virginia 1
Are you losing your favorite Starbucks? And if so, where will you go to get your fix?
(Photo: Reuters)
Oh what will the well-to-do have to blow their money on now? What? No more $5 cups of coffee????? How tragic!
The faltering economy has forced many of us to review our spending habits, and no matter how hard we try, we can’t justify handing over pictures of Abe Lincoln in exchange for a small cup of Joe.
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Resident Shop Talk Expert
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