by Jamie "Bork" Loughner
"What is really happening to the economy?" It's not all about the stock market after all. Mega-corporations use commercials and fear tactics to turn the US population into bigger and bigger consumers. Consumption [and many say greed] has become the driving force of our culture. We market, not make.
Debt spending is up as consumers become more and more dependant on credit cards for necessities like groceries, telephone and electric bills. But a friend who reads the business reports told me that there was a 75% increase in credit card write- offs announced by one of the largest banks in the world this last quarter [you know--bankruptcies and uncollectible debt]. Bankruptcies in general are on the rise. So are evictions. And layoffs. With manufacturing plants relocating at an unprecedented rate to Third World countries with few wage laws and more willingness to overlook sweatshop or slave labor conditions, our economy is now 2/3 based on consumer spending, according to business magazines and Wall Street. Given the economy being consumer based, how much shopping is going on becomes ever more important. So I was surprised, even shocked by how few people I saw shopping on 'Thanksgiving Sale Day.' Corporate news showed busy malls all over the region--despite a CNN poll that said 47% of customers would spend less for Christmas this year then last. [And remember that last year was terrible for the economy--people were shaken by dot-com failures, layoffs and 9/11.] Was there lots more shopping going on then I had seen? My curiosity was piqued. I decided to investigate for myself just how much shopping was occurring in my neck of the woods on what is normally the biggest retail shopping day of the year. So I went with a friend to ask a question or two at a couple of local malls.
A friend and I looked down upon the food court of Pentagon City Mall where Santa Claus and his helpers had set up shop. We were horrified. We knew the economy was bad but never expected to find this. There were no children in line see him. SANTA CLAUS WAS STANDING UP!
I was initially inspired to do an impromptu, informal survey of a couple local malls after I found myself cutting through a small local mall on the day after Thanksgiving around 6:30pm. Instead of being mobbed by shopping- crazed crowds, I found myself in a mall that was practically deserted. The mezzanine held 4 or 5 couples, a few individuals, and one group of 4 or 5 bubbling, effervescent teenagers.
I had been well aware that the government and their tame pundits had been using the tame monkeys in the media to blur the economic picture by analyzing economic data in the most favorable light. I have too many friends who have lost jobs or even become homeless because of the economic "downturn" to not be aware. My work against homelessness allows me to be aware of the rising number of workers and recently employed that could not afford decent housing and became homeless often for the very first time. An average of 340 families are on the waiting list for emergency shelter on any given day. Homelessness is definitely on the rise.
I had just visited New York City and while that city really doesn't seem to ever sleep, a few of its store clerks did lack for customers. They thought "it will pick up after Thanksgiving." So had a few friends who are clerks and a window dresser from DC that I know. I thought they might be right; but I wasn't extremely hopeful. So I asked myself, and a friend or two, "what is really happening to the economy?" It's not all about the stock market after all. Mega-corporations use commercials and fear tactics to turn the US population into bigger and bigger consumers. Consumption [and many say greed] has become the driving force of our culture. We market, not make.
Debt spending is up as consumers become more and more dependant on credit cards for necessities like groceries, telephone and electric bills. But a friend who reads the business reports told me that there was a 75% increase in credit card write- offs announced by one of the largest banks in the world this last quarter [you know--bankruptcies and uncollectible debt]. Bankruptcies in general are on the rise. So are evictions. And layoffs. With manufacturing plants relocating at an unprecedented rate to Third World countries with few wage laws and more willingness to overlook sweatshop or slave labor conditions, our economy is now 2/3 based on consumer spending, according to business magazines and Wall Street. Given the economy being consumer based, how much shopping is going on becomes ever more important.
So I was surprised, even shocked by how few people I saw shopping on 'Thanksgiving Sale Day.' Corporate news showed busy malls all over the region--despite a CNN poll that said 47% of customers would spend less for Christmas this year then last. [And remember that last year was terrible for the economy--people were shaken by dot-com failures, layoffs and 9/11.] Was there lots more shopping going on then I had seen? My curiosity was piqued. I decided to investigate for myself just how much shopping was occurring in my neck of the woods on what is normally the biggest retail shopping day of the year. So I went with a friend to ask a question or two at a couple of local malls.
Here is what we found: it wasn't what was reported on the local news. And I'll be thinking about the implications and analyzing for a while. Ballston Mall was deserted. Less then a dozen tables were occupied in the food court. Most of the vendors and sales clerks were leaning on their counters and standing idle. A lot of the kiosk venders were flirting, reading, or talking on cell phones. ATM's were completely deserted. It seemed no one wanted cash. Many stores had no customers browsing and may others only 1 to 3. Frowns were everywhere except for one small but laughing group taking pictures of each other in front of a huge, magnificent but lonely Christmas tree.
At Pentagon City, quite a few stores had a majority of their registers closed. Anchor department stores were doing average business at best. Some stores, some of the really big name ones with the biggest discounts were doing well. But I wondered whether it was good for their profit magin or was it just to get rid of inventory. They were the same ones who referred me to their home office. Clerks were standing around or looking for something to do with their stock. Some were doing routine book-keeping. Restaurants had virtually no lines and as we looked through the windows we could see empty tables even at dinner time. ATMs had no lines at all and few people. In many stores, the customers were greatly outnumbered by sales clerks.
At the height of foot traffic, it was easy to get off and on the escalators. Toy stores were not filled with children pointing out the toys they want. In fact, I saw a lot less children then I did two years ago at about the same time. Abercrombie and Fitch had 2 out of 3 registers closed while bored clerks competed to help customers. However, The Gap, which recently had a boycott called against it by sweatshop workers who manufacture their products, had plenty of customers. Their clerks were far too busy to answer any questions.
Question to businesses: How did you do businesswise on the day after Thanksgiving 2002 compared to last year's day after Thanksgiving?
Question to customers: Will you spend more this Christmas then you did last year or less the last year or the same?
Ballston Mall:
Chain, department, and franchise stores:
music store -about last year [assistant manager]
movie video store - 40% of last year, " 30% of what was projected-it's been terrible- I'm not sure if the
store will continue" [manager]
bath store -60% of last year
general shoe store -a little less than last year [employee]
women's athletic shoes -80% to 90 % of last year [manager]
book store -90% of last year [assistant manager]
lingerie -"not bad- not quite as good as expected" [assistant manager]
drug store - " about normal, maybe a little better" [employee]
clothes and other- declined to comment because of store policy [employees and manager]
Independent stores:
clothes-60% to 70 % of last year, " it's bad" [assistant manager]
pictures and knick knacks -" terrible day - we weren't here last year" [owner]
food court -65% to70% of last year, "and that was a bad year for me" [owner]
ice cream store not in food court- 75 % of last year [worker- daughter of owner]
perfume shop -65% of last year , "I've been here almost 10 years. In that time, rents increased 300% and
as of last year ,which was a bad year for me, my sales revenue only increased 50%. I had to barrow $60,000
just to keep my business open. This year has been a nightmare to date. Sales are down 40% at least overall."
[owner]
Kiosks:
jewelry -55% of last year [owner's son]
bonsai -"I wasn't here before-It wasn't what I expected." [owner]
cell phones -85% "It wasn't so bad." [employee]
hats and scarves -70% " last year $550 -this year $400" [owner]
Customers
*in shoe store*- less - "I love this! I normally don't take advantage of Thanksgiving sales because I hate crowds
but there's no one here today. No lines."
*in hall*- less -"Not going to buy much this year."
*in elevator*- less-" I'm not buying today."
*in food court*- the same*
Pentagon City Mall
Chain, department, and franchise stores:
department stores:
- "Better then last year but today's very quiet." [employee women's clothes]
- "good day" [employee in ladies eveningware]
- "Not too bad compared to last year but today sucks." [dept head- younger women's
clothing section]
- "not as well as expected" [employee at cosmetics counter]
- 90% of last year "and last year wasn't good" [dept. head in jewelry and watches ]
- 85% of last year [vendor of jewelry]
movie video store- "Not allowed to say" [manager]
luxury gift store- 25% increase over last year" but this is a new and better location" [assistant manager]
women's clothes store [dress]- "I'm not at liberty to discuss it." [floor manager]
candle shop- "sales were down" [assistant manager]
bath shop- 80% to 90% [employee]
toys- "Ok-down by a little of LY (last year) -nationally we broke about even of LY, maybe a little better-
some locations were FANTASTIC - many were not so good" [manager]
gifts and collectibles- " I'm feeling optimistic. When pressed about the specifics of the 29th -We had a fun
day." [store manager]
clothes- 70% of last year "our goal was $60,000 in sales for the day. We made $53,000 last year and
$37,000 this." [employee]
shoes- 95% of last year " worse by just a hair" [employee]
Clothes- "you will have to speak to our corporate offices" [assistant manager]
clothes- the same " But last year was not a great year."[assistant manager]
jewelry- 70% to 80% of last year. "Not so bad today but 2 years ago was much better" [employee]
candy- 80% of last year "about an average Friday" [employee]
movie theater- 80% of last year [employee]
food court- 75% of last year "or less" [assistant manager]
Independents-
game store- "Good compared to last year." [manager]
jewelry and collectibles "not so good" [assistant manager]
food court- 70% of last year "55% to 60% of 2 years ago"
food court- 75% of last year " It's all part of a downward trend-last year was worse the 2 years ago. The
year before last $5000, last year $4000, this year $3500. I've seen this for some time. The terrorists did some
of it but people losing jobs did more. The war and the sniper just added to it. It's about job security. People
are worried." [owner]
Kiosks-
watches and jewelry- 65% of last year," I made $2000 yesterday and $3000 last year. Last year was a
bad one for me" [owner]
pewter figurines and incense- "We weren't here last year but we had a very bad day"
hand painted porcelain- "Not so good" [owner]
dark glasses- 25% increase over last year "Much better. This year $13,097- last year $10,255."
[employee and only one of the kiosk staffers to smile when asked]
hats- 80% of last year "This year $1200,last year $1500." [relative of owner]
massage toys- " We were not here last year. yesterday and today were very bad. I didn't expect this."
[owner]
jewelry-70% to 80% "almost went bankrupt last year" [owner]
Customers
* In store* - the same- "I don't buy things for Christmas - it became too commercial and lost it's meaning
for me and my family."
*dept store* -less- "I' m only buying practical things for people like clothes for work. I'm not going to buy
the normal amount of extra gifts like music, jewelry , and books."
*in hallway* -much less then last year- " I lost my job- I'm here to apply for work."
*in food court with child* - less-"much less budgeted this year"
*near gift wrap*-less-"Not celebrating Christmas this year- I can't afford to."
*near the ATM*-the same
*outside the restrooms* - more- " maybe by a little"
*at the exit* -less- " We're not having Christmas at all this year. Last year I spent a lot of money but this
year we can't afford it."
*at the exit* -less- " No Christmas, except for my grandmother."
The Gift Wrapping Station -the same-"We did the same financially as last year for that day. We've seen less gifts but we're ok because our prices have gone up - especially for larger sized gifts. Also we are seeing more wedding and birthday gifts- probably because our lines are so much shorter.
And finally:
the Santa Claus Station - 45% of last year "-at best, maybe worse then that- I think parents don't want to raise expectations- I guess they don't want us to make promises they can't afford." [ a white-bearded heavy- set man in a red suit and hat and his helper as they stood quietly waiting for a child to come by]
