What Recession? Canadian Candy Retailers Living the Sweet Life

Canadians turn to candy stores for inexpensive pleasures.

January 17, 2012

TORONTO - With the Canadian economy sputtering along, candy retailers have realized strong sales, as Canadian consumers have turned to them for inexpensive pleasures, CTV News reports.

Candy retailer Jack Green said sales at his company??s Suckers stores have spiked 30 to 35 percent over the past four years. And the relative newcomer The Old Fireball Confectionary in Markham, Ontario is also doing well, despite its young age. Wendy Kadlovski, director of operations for the three-year old candy store, said sales have risen steadily since the store??s inception, a success she attributes in part to the recession.

"I think everybody likes a treat and (candy) is something that does satisfy that need without customers having to spend an inordinate amount of money," she said.

The trend is not surprising, explained David Soberman, a marketing professor at the University of Toronto??s Rotman School of Management. In addition to candy, alcohol and movie tickets also tend to do well during a recession.

"It's an inexpensive way to make yourself feel good or make yourself feel special," Soberman said.

Soberman also said the confectionary industry??s high profit margins ?" usually 50% or higher ?"enable it to remain resilient during difficult economic conditions, either by spending more on marketing or reducing prices if necessary.

"Margins are high even when selling products at mark down," Soberman said.

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