OK, so we all know that the economy isn’t good shape overall at the moment. But it’s not all bad news. Many sectors are doing well despite the protracted recession and rumored recovery.
Here are some of the businesses that are thriving despite – or perhaps because of – the recession.
- Video Game Sellers
You may not be able to take the kids to a bank-breaking trip to Disney, but you can give them hours of enjoyment for a mere $30 video game. It’s cheap entertainment, and hey… it works!
- Movie Theaters
Another relatively cheap escape from the world. It’s hard to think about your problems in a darkened theatre with a larger-than-life screen showing anything from an action adventure to the latest romantic comedy. Movie theatres and makers are benefiting from increased ticket sales, just as they did during the Great Depression.
- Discount Stores
Wal-Mart. Costco. BJ’s. If you can save a buck on everyday necessities, you’re most likely going to do it! And we are… these discount stores are enjoying higher revenues thanks to our new mantra of a dollar saved, a dollar earned. It remains to be seen if we will stick to our new found frugality once the economy rebounds. For now, though, discount stores are enjoying the upturn.
- Auto Repair Shops
Cash for clunkers aside, most of us are hanging on to that old beater vehicle for a while longer. If it’s paid off, you’re saving $300 a month or more over that new car (unless you’re paying all cash, in which case the recession probably doesn’t apply to you anyway). All this means that most of us are likely to take a few more trips than usual to our local auto-repair shops. After all, even a moderately high repair bill of $1K to $2K or so is cheaper than buying a new car. In fact, that $1K or $2K isn’t even a decent down payment on a new ride.
- Makers of Comfort Food
When people are stressed, they seek relief. And for many, that’s coming in the form of our food. Ice cream makers, cookies, candies… if you’re sweet or salty and have little nutritional value, you are likely to be consumed in a big way during a recession.
- Alcohol Manufacturers, Distributors, and Stores
After a few drinks, a lot of things don’t seem so bad. It’s another form of escape, like the video game or going to the movies. Alcohol is cheap and easy to obtain – and generally does well in an economic recession. It’s also cheaper to drink at home versus going out to a bar or restaurant.
- The Repo Man
More defaults, more need for the repo men. Good or bad – someone has to take control when the payments stop.
- Bankruptcy Attorneys
After so-called bankruptcy reform was passed in 2005 – making it tougher for consumers to walk away from their debts – bankruptcy attorneys suffered. But now they are back in business. It may be harder to claim bankruptcy, but if you’re facing a job loss and the inability to pay creditors, it is often the only way out. In fact, the law’s unintended consequence of making it harder and more complex to file bankruptcy has increased the billable time attorneys must spend on helping their clients file for it. Better for creditors and attorneys… worse for the rest of us.
As these examples show, there are bright spots in our dim economic situation.
So if you’re trying to find a way to recession-proof yourself, take a look at one of these bright spots for future direction. And that local liquor store that’s for sale? May not be a bad investment after all.
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