Business gazetteer: 'Survivors' shaken into a spending spree

Published on Thursday 28 February 2008 20:57

QUAKING IN THEIR BOOTS

SCOTTISH retailers will be crossing their fingers for an earthquake north of the Border after a bizarre report claimed the areas close to the epicentre of this week's quake in England are set for a boom in consumer spending.

A survey by marketing agency SPS Medi has claimed that natural disasters like earthquakes often kick-start spending on non-essential goods like luxuries and treats as people breathe a sigh of relief that they have escaped unscathed.

A poll of 1,000 people carried out since Wednesday's earthquake shows that those people closest to the epicentre are likely to go on the biggest spending spree.

Nearly four in ten people within 40 miles of Market Rasen in Lincolnshire – the epicentre of the quake – said they planned to buy a treat for themselves.

Stuart Evans, head of consumer loyalty specialist agency ICLP, said: "Traditionally, after a disaster consumers tend to go on a mini-spending spree. Their mindset changes and money is no longer seen as the main cause of concern."

Gazetteer, who lives 262 miles away from Market Rasen, thinks it still deserves just a little treat.

FACT OF THE DAY

$4.3bn

SALES of large office properties in the US plunged 80 per cent in January to their lowest level in four years as the credit crisis and lack of confidence in the economy hit activity. A monthly report by Real Capital Analytics showed sales of significant properties, those priced at more than $5 million (2.5m), fell to $4.3 billion in January from $20.1bn a year earlier. Manhattan saw the most precipitous decline.

KILLER QUOTE

"AT A time of growing economic uncertainty it is vital we do all we can to keep wealth-generators and their businesses in this country, not make them feel unwelcome and drive them out."

CBI director-general Richard Lambert on proposals to shake up the taxing of non-domiciles

GOOD DAY

Michael Grade

THE ITV boss is to extend his stay at the head of the broadcaster for a further year, the company said yesterday. Grade, who joined ITV from the BBC at the start of last year, will now remain in his role as executive chairman until the end of 2010 – a year longer than planned.

BAD DAY

Hungarian economy

HUNGARY'S three-month rolling unemployment rate has hit a ten-year high of 8.1 per cent, highlighting a sharp downturn in the country's economy. The jobless rate is still well below that in Poland, but Poland's economy is growing much faster than Hungary's.