The Recession Bites

[poliphilo]

My mother gave us Marks and Spencer's vouchers for Christmas- it's a tradition- and yesterday afternoon we set out to spend them. We thought of buying our week's shopping there, but the prices were sooo expensive we changed our minds and limited ourselves to a few treats- then drove to Sainsbury's to lay in the basics.

Ailz is on the phone discussing it with her mother. "£21 for a leg of lamb!" she says.

And this morning we hear M & S are shutting 25 of their "Just Food" stores and cutting 1,250 staff following the worst Christmas performance ever. After yesterday I'm not surprised.

At least they're only retrenching. Yesterday was the final day of trading for the British Woolworths. Cue sad footage of high street stores being stripped of their fittings and Woolies employees in their cheery, red tabards standing around on the snowy pavement, putting a brave face on it.

And what about Waterford-Wedgewood? Wedgewood can't go bust. It's one of the pillars of eternity. Where would we be without our jasperware?

But in the present economic climate, nothing should be taken for granted.

Which brings us to yesterday's LJ panic. That too- I fully believe- was also only a retrenchment. What we- and by we I mean us Westerners- forget is just how big LJ is in Russia. According to Wikipedia, Zhe-zhe, LJ's Russian name, is also the generic word for blog.   For Russians, LJ isn't just one platform among many,  it is the blogosphere- and therefore a highly valuable, cultural property. Even if the current owners wanted to get rid of it, I think there would be others eager to pick it up. 

So I'm not waving my arms around or moving elsewhere. I'm being optimistic or stoical or zen. And if the bulldozers come, they come. 

Comments

[jackiejj.livejournal.com]

Um: what LJ panic? Oh, dear!

Last night on our local news we were told that Alcoa, a major plant worldwide but with a big presence in a nearby town (named Alcoa) is laying off 13,000 workers, 450 of them local people; that Goodies, a clothing store based in Knoxville, is liquidating and will be laying off 1,500 workers; and that a local seaboat building company is laying off much of its staff.

We are reeling locally, but this is going on everywhere.

I have heard, and believe it, that after all this is over only the biggest strongest stores will remain--the Walmarts of this world.

[poliphilo.livejournal.com]

I think the businesses that survive will be the ones that are best adapted to the situation- not necessarily the giants. Woolworths was the British Walmarts (sort of)- with a presence on nearly every High Street- but it has been one of the earliest casualties of the recession.

One hears of isolated success stories. Marks and Spencers is suffering- but a budget chain (I forget its name) which carries a similar range of clothing at lower prices was on the news this lunchtime reporting increased profits.

[jackiejj.livejournal.com]

According to the news on Google, LJ is laying off 12 people and moving their design operations to Moscow...

As for success stories, McDonalds, which sells really cheap hamburgers, made a profit last year.

Really, the scary thing is that if one WANTS a salad and meat and vegetables for one meal, it's almost too costly to buy the ingredients.

I made a very humble tuna casserole last week, and buying only the simplest ingredients (chicken soup, 12 ounces of tuna, noodles, etc.) cost me almost $10! And that was at Walmart, cheapest supermarket around.

(The two cans of soup cost over $2 for both. The tuna, one big can, cost over $2 for one can.)

[poliphilo.livejournal.com]

It seems the days of cheap food are over.

I think those prices you're quoting are roughly equivalent to what we'd pay over here.