In an economy in which thousands of jobs are evaporating each month, it is hard to imagine that any business is actually benefiting from the hard times. However, there are companies that are not only surviving, but thriving during what is being called "the worst economic crisis since the Great Depression."

Wal-mart is certainly doing alright for itself these days. As consumers look to save a buck on their household purchases, they are turning to the discount retail giant in droves. In fact, customers that avoided Wal-mart in the past are now finding the low prices suddenly appealing. Wal-mart ended the quarter on January 31st with a profit of $3.8 billion. Compare that to other blue-chip companies which are actually losing billions of dollars, and laying off tens of thousands of employees.

Hormel is another company that is doing quite well during the economic downturn. Hormel makes a product called Spam. Before its name was synonymous with unwanted junk email, it was best known at the pink, gelatenous ham-like substance that comes in a square can. Hormel cranks out millions of cans of the stuff every year. I actually like Spam, and I have always purchased it along my weekly groceries. I enjoy eating Spam and eggs for breakfast. It's one of the cheapest meat options you'll find anywhere. Sales of Spam have grown by double-digit percentage points recently, and the plant that produces the stuff has employees working around the clock to meet demand. Spam may get a bad rap amongst "foodies" but it is considered a downright delicacy in Hawaii, which got addicted to the faux ham during World War II.

Nestle is another food company which is reaching out to struggling consumers. It is said to be stepping up its marketing of its low-cost staples such as boullion cubes for making soup stock and its brands of instant coffees. It will also start offering its products in smaller packages at lower prices to reach consumers who are looking to pare back their food budget.

The companies that will prosper in the current economy are those who are willing to adapt to rapidly-changing conditions and serve their customers. The companies that will continue to do poorly are those who don't take the lighter wallets of their customers into account when pricing their products.

1 comments

  1. Darlene 'Dee' Bishop // February 23, 2009 at 10:41 AM  

    Thanks for sharing such great information in all of your posts! I’ve given you The Lemonade Award so be sure to swing by my blog at http://frugalfancyblog.blogspot.com/ to pick up your award!

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