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Tuesday, 02 June 2009

If we're in a recession, why is the mall so crowded?

In case you haven't heard, we're in a recession. As if you can avoid being bombarded by the continuing dismal economic outlook. It's in the paper, on tv, on-line, and your company probably stopped stocking the break room with coffee and snacks. Open any business section of a newspaper and you'll read about how hard the retail and restaurant industry is being impacted by the times.

I'm finding this really hard to believe. I went shopping over Memorial Day weekend to see if I could snag any great sales and the stores were packed. When I saw all the traffic heading to the shopping center, I almost turned around and went home. The way the media portrays it, I expect to go to a restaurant and be the only person there. But I still find myself waiting for a table. So what's going on? Are people just buying less on their shopping excursions? Ordering just water and a salad instead of wine, steak, and dessert?

Don't get me wrong, there's some restaurants and stores/malls that have been hit pretty hard in my area. Bennigan's, TGI Fridays, Circuit City, Dillards, Steve & Barry's have all closed in my home town (and across the country in some cases). But as I head to the more affluent suburbs, it seems like business as usual.

How do you think the recession has impacted shopping habits? Have you changed your own?

Thursday, 14 May 2009

"You are so lucky you graduated last year."

I have heard this phrase several times from family, friends, co-workers, and have even muttered it to myself on numerous occasions.

However, this wasn't originally my opinion on the matter. After completing two undergraduate degrees in four years and preparing to jump into a full-time career, this time last year I was wondering why I didn't prolong my college career just a little bit longer. In the fall it was such a shock to not be packing up my dad's pick-up truck and heading back to campus. So weird to pass by the back to school and college displays in the store and realize that I didn't need any of it. I was sad to realize that Thursdays were no longer "Thirsty Thursdays" since I would actually have to wake up and go to work on Friday.

That was until the federal government had to take over Fannie and Freddie. I was actually on a plane on my way to training and my first day of work when I heard the news. And then the economy went downhill from there, but I'm sure you noticed that already.

At a time when everyone else is worried about losing their jobs, don't know how they will pay their mortgage when their ARM adjusts, and are seeing their 401(k)s drained, I actually have money for the first time in my life. And now graduates are facing quite a different environment than I did after walking across the stage. Some companies in my industry have cut offers, or in some cases even rescinded offers, for incoming new hires. An article in the Wall Street Journal (a must read for all professionals- young or old) cited a study that showed those who graduate in turbulent economic times could actually take 10 years or more to catch up to the salaries realized by others in the same industry and jobs.

What has your post-college experience been like? If you haven't graduated yet, are you nervous about finding a job?