TK's MORNING BUZZ: Since Sept. 11 Americans Have Been Spending More Time Cocooning at Home, and Video Rental Is One of the Beneficiaries3 Oct, 2001 By: Thomas K. Arnold
Our publisher, Don Rosenberg, shared with me an interesting article he cameacross in yesterday's edition of USA Today. It's all about how Americans have been "cocooning" in the weeks after the terrorist attacks of Sept. 11, spending more time at home and buying stuff they can enjoy in their homes.
"Devices that inform and entertain fare well during strife," the article said. It cited a Consumer Electronics Association phone survey that found consumers were less likely to cut back on electronics than on dining out, going on vacation or going to the movie theater.
The survey found that 76% of consumers expect to spend about the same amount of money as they did before the attack; of the 8% who said they planned on spending more money, "electronics are a likely focus," accordingto the article.
Other statistics bear this out. In a slumping economy, mass merchants like Wal-Mart and Target Stores that carry primarily household goods reported banner business.
And, as the USA Today article points out, video rental is among the beneficiaries of this "cocooning" trend. "Although travel and restaurant business has fallen off in the wake of the attacks," the article says,"investment consultants have been bullish on companies such as Blockbuster, because people still need the diversion of some kind of entertainment, even if they're staying home."
So there you have it. It's not just me who's bullish on our business.
Contact TK directly at:TKArnold@aol.com