Jan 10, 2008 6:51 pm US/Central
Economic Recession Could Alter Shopping Habits
NORTH TEXAS (CBS 11 / TXA 21) ―
The Federal Reserve chairman says he is prepared to act aggressively to prevent a recession. Thursday, Ben Bernanke acknowledged that the economic outlook for 2008 has worsened and strongly hinted there will be another interest rate cut later this month.
Economic concerns may have many in North Texas wondering about a recent retail boom. New shopping malls and outdoor shops are popping up across the area.
Unless you live in a very rural area of Texas, you're probably not far from a new trendy shopping center or one that's under construction. The new businesses are popping up in virtually every North Texas city, but a recession could change they way we all spend our money.
The cash registers are scheduled to start ringing at Uptown Village at Cedar Hill this spring. That could be imperfect timing if the national economy is in a recession.
"I live just right over here in Duncanville and I wasn't that eager to have this shopping center right here," said resident Scott Stephens. "But I think it'll be nice for convenience sake."
It seems that wherever there's space there are dreams of having a shopping experience that mirrors Southlake or Mockingbird Station.
Some are questioning if too much building is going on. Southern Methodist University School of Business Professor Mike Davis says, "We would hope that the people building these centers are building for the long-term and in the long-term the prognosis is good."
Cox says competition is good and affluent consumers will continue to spend. Some North Texas consumers told CBS 11 News, they'll just have to weigh it out. "I don't necessarily think people will spend less money. I think the services better be good," one shopper said.
"I'm able to buy a few things, but I still see that as prices go up the amount of money that we… our income is not keeping up with inflation," said retired teacher Linda Williams.
Gas prices and employment are also a big part of the economic equation.
Proponents of the building boom say residents should also keep in mind that the new retail construction creates jobs.
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