Baby boom defies economic gloom

July 16th, 2009 by Julie Wilson

 

Historically signifying good times and economic stability, this year, during one of the worst ever recessions, a new type of Baby Boom is emerging.   

No I’m not talking about an increase in the number of babies being born (although it could be suggested we’re all burying ourselves under the covers), but the down-turn defying sales in the infant sector. 

Maternity retailers Mothercare and JoJo Maman Bebe have both reported particularly strong results this year, with JoJo Maman Bebe recording a positive 11 per cent hike in like-for-like sales.  Speaking to Retail Week, the founder and managing director of the successful retailer, Laura Tenison, said: “we have never suffered from the recession; our sales have been consistently good.” 

And it’s not just the babywear sector that’s happily gurgling through the bad times but the food sector too. Research commissioned by Mintel revealed that families are set to spend £491 million on baby food this year - 50 per cent more than the amount spent in 2004. 

The staggering figure is largely driven by the organic baby food sector, accounting for one fifth of all baby food sold. The reason behind the sector’s continuing success is, I’m told, “guilt purchasing”, the title given by parents to their physical inability to buy anything less than the best for their little ones, even when money is tight. One parent told me they’d rather live on jam sandwiches than deny their child his daily helpings of organic spinach, salmon and wild risotto dinners.

Speaking to the Scotsman, Susie Willis, a former chef and mother of three who launched Plum Baby in 2006 and now has 5% of the UK baby food market, supports the theory and said: “Mums may be tightening their purse strings for the rest of the household, but baby food remains number one when it comes to giving them the best food.”

So, when we’re all looking for a way out of the recession, maybe there are worse things we could do than to duck for the covers - nine months from now and we could be contributing to a booming and blooming economic climate.

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One Response to “Baby boom defies economic gloom”

  1. economic stability Says:

    economic stability…

    Your topic Trade Setups ” Aug 6th 09 | GBP and EURO Interest rates & US NFP Tomorrow was interesting when I found it on Friday searching for economic stability…

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