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American Morning

Cocooning Effect Hurts Travel, But Helps Other Retailers

Aired November 23, 2001 - 08:35   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: Now, not all industries are suffering from the effects of 9-11 and the souring economy to boot. In fact, some industries right now are actually prospering.

As CNN's Brooks Jackson tells us this morning, they're benefiting from the cocooning effect.

(BEGIN VIDEOTAPE)

BROOKS JACKSON, CNN CORRESPONDENT (voice-over): If this is such a tough economy, then why are these pool tables, costing an average of $3,000 to $4,000, selling so well? Brunswick Billiards says October sales were up 20 percent over last year despite September 11 and a bad economy. Or, perhaps because of September 11.

This woman is shopping for a pool table after canceling a vacation to Cancun, Mexico.

DOREEN EDELMAN: But this particular item probably replaces an opportunity that we wanted to have to travel. But at this point in time my husband is insistent about not getting on an airplane and definitely not leaving the country.

JACKSON: September 11 hurt airlines, hotels, restaurants. But for some, there's a silver lining.

DAVID WYSS, STANDARD & POOR'S: I think there is also this cocooning effect. People are spending more time at home. They don't want to go out as much and that means they want a new television set.

JACKSON: And they're buying. October sales of DVD players were up 23 percent over last year, according to the Consumer Electronics Associate. People are renting more videos, too, rentals up at Hollywood Video and at Blockbuster. And what goes with the video? Domino's pizza deliveries are up 22 percent in the Washington, D.C. area since September 11, all evidence that Americans are cocooning.

We asked the consultant who coined that term what it means.

FAITH POPCORN, TREND EXPERT: Well, it means people wanting a safe environment, being afraid of the outside world, really wanting to have a little protection and especially post 9-11 this trend is growing like crazy. JACKSON: And so it seems. Comfort foods are selling well. Campbell's Soups says it saw significant acceleration of sales after September 11. Sales are up seven percent over last year. And when people stay at home, they want it to be nice. So they're spending more money on home improvement. The Lowe's chain reports seeing more shoppers in its stores since September 11 and says sales are running four percent ahead of last year.

REGGIE SUMMERS, LOWE'S MANAGER: Well, that could be because maybe people aren't spending the money flying and aren't spending the money going out of town and are staying at home and finding projects to do around the house.

JACKSON: Home products are also moving well at Wal-Mart, where sales are running almost 15 percent ahead of last year, and hot selling items includes housewares, household chemicals for cleaning and such, pet supplies, home electronics. And when people do go out, they're still staying close to home. Families are flocking to the movies. Movie attendance since September 11 is up eight and a half percent compared to the same period last year, 16 1/2 million more tickets sold, according to the Exhibitor Relations Company, which keeps daily tab on what's happening at the box office.

(on camera): And the current movie favorites? Harry Potter, of course, and Monsters, Inc., two family films in first and second place. When was the last time that happened?

Brooks Jackson, CNN, Washington.

(END VIDEOTAPE)

HARRIS: That's a very good point. They've both got our money.

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