Oregon Public Broadcasting

Businesses in the Pacific Northwest continue to feel the pinch ofthe worldwide economic crisis. Oregon unemployment is still high. But one retail sector is weathering the recession fairly well: grocery stores. 

Reporter Barbara Leidl visited a small shop with German goods, a large supermarket featuring Asian products, and a general market with an upscale deli counter.

People have to eat. That seems to be one lesson of this economic downturn.

Mike Zupan: "Unlike other businesses we sell food and I just always tell our customers,I’m glad we’re selling food and not selling cars or doing real estate."

That's Mike Zupan, President of Zupan’s grocery stores.  His company has three locations and about 300 employees in Portland.

Zupan says his stores saw customers holding back last Christmas.

Though he wouldn't detail his company's earnings, he said his numbers have not fallen off dramatically -- even though Zupan’s stores are high-end and carry a selection of gourmet food.

Mike Zupan: "I think that the consumer stopped going out and restaurants were definitelyaffected to our benefit, that people weren’t going out to restaurants but theywould come to the grocery stores, especially nicegourmet stores looking for good quality food, instead of goingout, for making it forthemselves at home."

Zupan's did have to cut back this year. A fourth store closed in the spring. 

Mike Zupan says it had underperformed from the start, and the lease was coming to an end. 

In general, though, jobs at Oregon grocery stores have proved to be a comparatively safe bet in the current climate, says Art Ayre, economist at the state Employment Department.

Art Ayre: "The employment in the food and beverage store industry has been remarkably stable during this downturn - it has turned slightly negative over these last couple months, but you know, it's a very, very little downturn compared to other industries like construction, manufacturing or mining and logging where they're down in double digits over the last year."

His explanation lines up with those ofgrocery owners.

Art Ayre: "You may cut back on going out to eat in restaurants, you certainly may cut down on purchasing automobiles or vacation or various nice to have items, but food is one of those basics that people generally don't do without."

The Seattle-based regional chain Uwajimaya is an example. It carries food and gifts from all around Asia, and recently opened a fifth store.

Jack Ayers is the director of  Uwajimaya in Beaverton. He says, no business was unscathed by the economic crisis, but....

Jack Ayers: "Overall, it slowed ourbusiness just a bit. As, Iwould say, as confidence really hasn’t eroded here, people still purchase, and it’s food. So in terms of our business, people still need to eat."

And,with its special ingredients for sushi or sweets from China or Japan - Uwajimaya offers goods that might be difficult to find in a Safeway or Fred Meyer store.

Jack Ayers: "If the products you carry are relevant to aperson’s life they’llcome back and they purchase it."

Specialized products have also kept Edelweiss thriving.  Edelweiss is a deli in Southeast Portland, with about 20 employees. The shop sells authentic German sausages and meats – made by Tony Baier and his brother.

Tony Baier: "There’s no one quite like us with the fact that we make everything ourselves. Making it ourselves allows us to sell it a little more inexpensively than everyone else and definitely much fresher, a lot of times it’ll come straight from the oven or straight from the oven into the showcase and people would be buying it right then."

Edelweiss attracts not only neighbors but also tourists from Germany, Russia and Asia, who have kept the shop busy.

Tony Baier says he's seen a steady increase every year. As a result, Edelweiss even hired workers during the economic crisis. And the shop's owners are broadening their product line.  They've invented a new sausage.