The Recession Is Over!
Doug Marranci
The Fed’s Ben Bernanke and many other market watchers say that the recession has bottomed out. There are small positive signs appearing here and there. I agree with predictions that strong signs of recovery will manifest over the next couple of months. There will still be problems here and there, but in my opinion, the bottom line is that the whole economic climate begins to change when a retail consumer sees the item that they have been looking at for many months, picks it up and buys it.
While out and about in retail settings, I notice that over the last year, people were shopping, however they were not carrying bags, now people are actually purchasing things they have not been and retail sales are showing some signs of recovery.
Everyone has learned how to cut back, and this is not a bad thing as we will emerge from this economic distress stronger with a more disciplined approach to spending.
A difference I notice is that consumer behavior fluctuates wildly in many areas. I have spoken with restaurant owners who say they have recently had some of their best months in history as well as their worst months in history. Interestingly enough, many of the restaurants or quick service places that have a more premium product, report that their sales are more stable than ever before (thinking premium yogurt, or juice bars, and high end restaurants.)
Many people who are not able to take a vacation may be “treating” themselves to special things that they may not have enjoyed in the past. Retail predictions are that this holiday season will be good in sales, as more people will be having a homestyle “old fashioned” family holiday than ever before.
The Recession is Over!
One of the premier indicators of our economic health is the Real Gross Domestic Product and you can see that the GDB hit bottom in first quarter 2009. The positive news is that second quarter 2009 GDP rose 1 % and after a good holiday season, will certainly be positive again.
People are beginning to feel optimistic again. I have no doubt that people are feeling a little beaten up lately, however they will emerge, with caution. Impulse buying may be dead, but businesses that present a good value along with customer comfort will thrive.
Opening a business now forces one to make more careful decisions, with more thought and research put into every aspect of the business. If the business plan is viable today, one is destined for success as the economy improves.
There are many deals out there right now, and many buyers looking for a bargain. These bargains are going to disappear after the first of the year. If one is considering buying a business, now is the time to ride the wave and become one the successful entrepreneurs of the “new emerging economy.”
Doug Marranci
Broker/Partner
Atlanta Restaurant Exchange
1708 Peachtree Street NW
Atlanta Georgia 30309
www.AtlantaRex.com
404-892-4999
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