With the economy in recession and unemployment on the rise, many Americans will party less hearty for this year's Super Bowl. One measure of that might be called the Guacamole Index. The California Avocado Commission says Americans will consume 46 million pounds of avocados this weekend, down from nearly 50 million pounds last year.
Beverage retailers are also seeing a downturn. At Mr. Kegs in Huntington Beach, pre-order sales are off at least 20%. “The whole gamut's down, not necessarily the premium beers more than the domestics," said company owner Jim Schaffer. “Kegs are a luxury for everybody these days."
Big-screen TVs? Same story. In a good season, Ken Crane's can sell 500 televisions the week before the game, which usually matches Christmas as the hottest sales period, said Executive Vice President Pam Crane.
The slow Super Bowl buildup comes on top of a losing season for these merchants, which stand at the center of an industry that in 2008 sold $10.4 billion worth of invitations, balloons, gifts and party goods. Their outlook has darkened: Last year, 49.3% of party goods retailers said growth was in their future, down from 57% in 2007, according to an annual survey by Party & Paper Retailer Magazine.
With independent stores and chain retailers struggling, more owners say they now consider online suppliers to be their main competition. More retailers, especially small independents, are collapsing under the strain, said Abby Heugel, the magazine's managing editor.
Other companies are slicing inventory while trying to expand geographically to widen their customer base to compete with online rivals.
“Everyone's having a very slow January, hoping that things pick up," Heugel said. “Customers are cutting back on a lot of things."
Instead of renting outside facilities for graduation and birthday parties, hosts are planning smaller shindigs at home, Heugel said. “Affordable luxury" -- paper plates and cups designed to look like fine china and porcelain -- is a popular emerging trend, she said.
Party rental agencies, too, are trying to please customers by discounting their inflatable Sesame Street bounce houses, for example, and by allowing orders for early morning deliveries.
“People are holding back," said Levon Bakalian, manager of Party On! Rentals near Eagle Rock. “They'd rather keep $200 for food on the table instead of spending it on a bouncy."
