How'ya Doin'?

Last month I commented on the mixed results being reported by discounters and chain stores during these times of economic uncertainty. Some are doing great, while others are in bankruptcy. But how are specialty retailers (who are harder to monitor since their financials are not publicly posted) doing? Well, according to reports from our editors, who have their ears to the ground, some are doing great, while others are in bankruptcy.

Only retailers who can adjust their stores' merchandise mix to satisfy customers will survive in this difficult climate. One independent reported that while some of the competition in her resort town closed for good, she took out a loan, expanded her inventory, and saw business increase 20 percent over the winter months. She thinks that her customers are doing less traveling and spending their money closer to home. Another retailer saw his customers spending their money on his high-ticket Christmas merchandise rather than on travel. On the other hand, two others saw sales of their high-end inventory stalling, so they concentrated on less price-sensitive gift items, and reported good sales. Smart retailers were able to use the changing economic climate to open new channels to reach current and potential customers. We're now in the second quarter of 2002, and things are looking a lot better than many thought possible just a few months ago, when asking the question "How'ya doin'?" was suitable only for Budweiser commercials.

The next big product introductions will be at the National Stationery Show next month. Manufacturers and vendors who responded to our annual stationery survey reported some subtle changes in the terrain of their industry. This year will see an emphasis on spiritual/inspirational and patriotic themes. There's good news, too, in that vendors predict they will hold the line on prices. Our complete Stationery Industry Report begins on page 56.