What Companies Are Least Affected by the Recession? By Joseph Shalaby At Isnare.com Ezine Articles

The recession creates a huge impact on many companies from all sectors of the business world. Each week brings news of banks capsizing, companies closing their doors, major retailers downsizing the number of their locations, and more. It’s a cause-and-effect scenario that has people spending less money as they either scramble to create a savings account, pay off escalating debt, or meet the ever-rising cost of daily living. In turn, businesses and companies around the world begin to slump as sales falter.

While it is certainly true that many companies are struggling to stay vibrant or even just to make ends meet, there are those companies and businesses that seem to be holding their own. In fact, some of these companies are even experiencing an upswing in sales as they pick up new customers.

Companies that Sell Basic Necessities Survive a Recession

In particular, companies that manufacturer the basic necessities of life are least affected by the recession. People still need to eat, wash their laundry, clean their homes, practice personal hygiene, and feed their pets. Discount giants such as BJs, Costco, and Aldi continue to open their doors week after week as consumers arrive to purchase necessities and simple pleasures. Discount stores such as Walmart, Kmart, Kohls, Target, and discount pet stores continue to sell to loyal customers as well as new ones looking for less expensive goods than they are used to buying.

Company health care giants such as Johnson & Johnson continue to see profits despite the economic downturn. Likewise, companies producing articles for daily use such as Procter & Gamble and Kraft Foods also carry on without experiencing too much of a pinch in their sales quotas. Fast food restaurants also continue to hold strong ground against the effects of the recession as more and more people opt for a less expensive meal out.

Companies that Sell Simple Pleasures Survive a Recession

Discretionary types of spending that are the first to be given up include expensive meals or nights out on the town. In turn, the alternatives that people select to replace these activities are going to experience a surge of increased consumerism. So, as more and more people stay home to save on gas while avoiding big ticket expenses, companies selling computer hardware and peripherals, basic needs, and simple pleasures are holding their own.

Companies selling the simple pleasures in life, also referred to as guilty pleasures or sin stocks, will continue to do well as many consumers attempt to keep their spending habits under control with small indulgences. These simple pleasures include such items as gourmet chocolates, beer, alcohol, cigarettes, DVDs, CDs, and video games.

Since parents aim to keep their children happy, even in times of economic trouble, toys will continue to be another big seller. In fact, the Toy Industry states that toy companies tend to maintain their profitability during a recession, although there will be a few fallouts as not every company within an industry is going to survive. In general, the flexibility to change with the times and produce affordable toys to meet the needs of both parents and children alike helps toy companies to hang in there.

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