Oregon Public Broadcasting

The recession has created a different kind of shopper and that's having a profound impact on retailers including ones in the Northwest.

This week we've been airing a series called "The New Normal." We've heard about the transformation going on in real-estate and the home construction business.

In the third, and final, part of that series, we look at retail sales. The latest numbers say retail spending is still down, despite President Obama's stimulus money and the popular Cash for Clunkers program.

Correspondent Anna King ventured into a mall to see how consumers and retailers are adjusting to "The New Normal."

Greg Rose: "Designer Inspired Styles -- see I can look like a designer -- but not pay for it."

Greg Rose, 27, tries on sunglasses at the Cool Shades kiosk at the Columbia Center Mall in Kennewick, Wash. He says in this new economy he's cutting back his spending and buying imposter shades instead of the designer ones he would have a few years ago.

We're here with Greg Rose at the Columbia Center Mall in Kennewick, Washington. That rushing sound you hear is one of those indoor fountains. Rose is looking over sunglasses at one of those little kiosks in the center of the mall.

Greg Rose: "So there is actually a pair that I tried on that l thought looked pretty sweet. Are these cool?"

Rose is 27. And a door-to-door salesman. After the market crashed he decided to become a nurse. And he's being more careful with his money. A few years ago Rose says he would have bought the real designer sunglasses, now he's getting imposters.

Greg Rose: "Probably the biggest difference is now it's a little more regimented. Now maybe we're not going to be able to go out for dinner tonight. Let's save that money kind of a thing. Before it was like a party. Let's go out, let's go eat out every night. Now that's changed." 

There are a lot of people like Greg Rose. Shoppers across the country are buying less expensive clothing and fewer items altogether.

Jennifer Black is a well-known retail analyst and consultant based in Lake Oswego, Oregon. For a long time now, as she puts it, matchy, matchy hasn't been cool. And now Black says the recession gives shoppers an even bigger incentive to mix items.

Jennifer Black: "Instead of for example buying an Abercrombie jeans, an Abercrombie sweatshirt and an Abercrombie polo, maybe they are just going to buy a sweatshirt and buy a pair of jeans at J.C. Penny's."

Not only that, but Black says customers are demanding better prices and more customer service. So, like a teen in the mall would say, "Duh!" But listen to this.

For Seattle-based Nordstrom, this recession has been worse than even the Great Depression. That's according to corporate spokeswoman Brooke White.

Throughout retail industry last fall Black says sales nearly halted. Malls emptied. Retailers freaked.

Jennifer Black: "I think personally I came to a halt like everyone else did in September. It was the scariest thing I've ever seen."

In response, retailers are cutting sales clerks, reducing inventory and closing low-performing stores. In the case of Nordstrom they are opening more Rack discount stores.

In the second quarter, Nordstrom posted a nearly 10 percent decline in same store sales from last year. That followed a more than 13 percent decrease in the previous quarter.

Black says retailers are calling a 10-percent decline in sales the new flat.

Jennifer Black: "I've covered retail in this capacity for 30 years. I'm a perfect example; I look at my closet and think I really don't need a thing. And so my spending has dropped significantly."

But even value-based retailers are having a hard time.  Remember that designer knock-off sunglasses kiosk in the mall? Wendy Hardy owns it. She says SHE's down 10 percent from last year.

Wendy Hardy: "Just what we are selling there is an impulse item. I have felt that maybe we would do better because of our price point, so I had a positive outlook. I'm surprised that we are down in sales from last year."

But what does the future hold? If the economy recovers, and money starts flowing again how will all this play out? Some experts are pretty optimistic.

Take Washington's State Economist Arun Raha.

Arun Raha: "When people deny themselves consumption and they are used to a lifestyle of consuming, maybe they will have access to normal credit. But once the economy comes back, I think they will go back to some sort of normal spending so they can feel good about themselves."

But analyst Jennifer Black says the old days are never coming back.

Jennifer Black: "Priorities have changed. I think people are thinking about their families. After this shake out I think it really was a wakeup call. I am in the camp that we will not see the kind of spending that we saw for many years, and maybe not in my lifetime."

Black says there are simply too many stores for America now. She says retailers who do survive are the ones that: Offer great values. Roll with razor sharp marketing. And keep up with social media trends. They also need to be lightning-fast competitive to capture this new savvy shopper.

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Jennifer Black