Here is a brief list that was just compiled by the financial information company, Sageworks, outlining a handful of interesting recession-time behaviors, all of which are small indulgences that have seen growth in the last 12 months. People may not be spending on large luxuries like cars, jewelry and vacations but they are still keeping room in the budget for small luxuries like gym memberships and dining out.   

Below is a new list of 7 things that consumers are still doing.  People are fixing their cars, remodeling their homes, and still making trips to the dentist.  While some consumer behaviors have changed, it is nice to hear that the world hasn’t stopped in the current economic climate.

 7 Things Consumers Are (Still) Doing:

• Auto repair shops grew their sales by an average of 2.4% over the last 12 months.
• In contrast, car dealerships saw their sales decline by 9.7% in the same period.

 2) Remodeling and fixing their homes instead of moving.

• Building equipment contractors (such as electricians, plumbing and heating contractors) saw their sales increase by 4.6% in the last 12 months.
• In contrast, home builders saw their sales decrease by over 5% in the same period.

 3) Shopping at grocery stores more than eating out.

• Grocery stores experienced average sales growth of 6.7% over the last 12 months.
• Sit-down restaurants saw growth of 3.9% in the same period.

 4) Attending technical and trade schools.

• Trade and technical schools saw their top-line sales grow by 7.8% in the last 12 months, compared to growth of 5.9% in 2007.

 5) Going to the dentist.

• The average dentists’ office experienced sales growth of 6.9% in the last 12 months, up from 4.9% in 2007.

 6) Getting personal care services such as haircuts and manicures.

• Hair salons, barber shops, nail salons, and skin care providers experienced an average of 4.5% sales growth in the last 12 months.

 7) Visiting an accountant.

• Accounting firms saw average top-line revenues grow by 10.2% over the last 12 months, putting the accounting industry in the top 20 industries in the country by sales growth.

Companies such as newspapers, news websites and social networking sites dependent on advertising dollars to make money may see a particular slow down as businesses cut unnecessary expenditures for fear of continued economic woes.  Sageworks Database of private company activity shows a downward trend in advertising dollars spent as a percent of sales from 2007 to 2008 for automobile dealers, restaurants and retail clothing stores.

In light of this trend Brian Hamilton, CEO of Sageworks, remarked, “when companies feel threatened in an uncertain economic environment, they tend to cut discretionary expenses, one of which is advertising.  Unfortunately, this tends to further depress sales and profits, since good advertising efforts drive profits and sales.”

The downward trend in advertising which is presumably due to tightened spending by businesses is similar to the downward trend being felt by retail stores due to tightened discretionary spending by consumers (see “Small and Large Retail Businesses Feel the Downturn“).

See also: http://www.adotas.com/2008/09/report-display-down-6-year-over-year/ - On online advertising trends in 2008.