THE RECESSION IS OVER *

- LOS ANGELES, CA


In many of this week’s newspaper headlines it was announced that we are about to exit the recession as we wrap up the 3rd consecutive quarter of economic growth. This made me think of the famous Christmas song; Happy Xmas from the Vietnam era from Yoko Ono and John Lennon. I had the great honor of working with Yoko Ono in preparation for her exhibition Yes; Yoko Ono. Along with her Archivist and Curator we collaborated on a number of products for the San Francisco Museum of Modern Art museum store. The attitude of this statement is right on target regarding a new perspective and could be an inspiration for us to get back to doing business.

“WAR IS OVER! …if you want it”

So here’s my version for the moment we are in:
THE RECESSION IS OVER! …if you want it.

The past year has been undoubtedly quite difficult for most retailers and their suppliers. Nowhere was this more evident for me than at the San Francisco Int’l Gift Fair this past August. For years this was one of the most important international trade show after New York. However SFIGF was less than half the size it was a year ago, and to make up for it the addition of the Gourmet Housewares show only partially filled the adjacent halls. The traffic in both was slow. One booth, Nespresso attracted the most activity with free coffee samples.

To me all this holding back has been a No-Win situation for everyone. Much of retail is offering the customer the same old merchandise with severe promotional pricing. The market is nervous and limits their new product launches. So, with vendors dropping out of a major gift show in droves- what else can be expected but a very small attendance of Buyers. Sounds like a Catch 22.

So, if this indeed is the beginning of a turn around we should challenge suppliers to offer new products with some conviction and retailers will need to make commitments to give these new introductions a chance at success.

With just three months ‘til the winter gift shows we can only hope that the mood and the merchandise can only get better. Hopefully retailers will front load their 2010 travel budgets to get the most out the winter shows as possible.