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Current DateTime: 08:17:28 29 Nov 2009
LinksList Documentid: 31388230
Expiration DateTime: 11/29/2009 8:18:10 AM
    • Shopper & Investor Deals  25 Nov 2009

        A look at what's likely to happen at the registers once the doors open on Friday, with Richard Hastings, Global Hunters Securities; Richard Jaffe, Stifel Nicolaus & Co. and CNBC's Jane Wells.

    • Black Friday: Bargain or Bust?  25 Nov 2009

        Whether the deals are better than what shoppers will usually see or if it is just another marketing tactic, with Hitha Prabhakar, Style File Group; Brad Wilson, BlackFriday2009.com and CNBC's Jane Wells.

    • Holiday Central  25 Nov 2009

        A discussion of the many ways retailers are preparing for Black Friday, live from K-Mart in Burbank, CA, with CNBC's Jane Wells.

    • Retailers Getting Ready for Black Friday  25 Nov 2009

        Retailers are getting ready for Black Friday, and CNBC's Jane Wells has the play by play. Stacy Janiak, of Deloitte, shares her insight.

    • Amazon vs. Wal-Mart  24 Nov 2009

        What began as a price war between Wal-Mart and Amazon over a handful of books has nos spread to a wide assortment of consumer goods. Lee Eisenberg, a noted retail expert and consumer behaviorist, and CNBC's Jane Wells discuss.

    • Prices to Be Thankful For  24 Nov 2009

        A decrease in food prices is something to be thankful for this holiday, reports CNBC's Jane Wells.

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Current DateTime: 08:17:30 29 Nov 2009
LinksList Documentid: 31388237
Expiration DateTime: 11/29/2009 8:18:17 AM
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Funny Business

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Dec.14
3:31 PM ET
Friday, 14 Dec 2007
Dry Cleaners: The New Economic Measuring Stick?

Out in La-La Land, when the going gets tough, the tough quit dry cleaning. I've created the CNBC Dry Cleaner Economic Index. After all, what's the first thing you stop spending money on when you need to cut back on expenses? And in Southern California, a lot of people are having to cut back.

First, there's the writers' strike, going into its seventh week. Michael Shader, who runs Milt & Edie's Dry Cleaner in Burbank, says not only have writers stopped coming in, but also some actors. During our interview, he realized, "As we're talking, I'm starting to think, 'Hmmmm, I haven't seen him, I haven't seen her.'" (On the upside, the strike may be good for doctors and chiropractors, as I hear writers are complaining of a new writer's cramp--sore wrists from holding picket signs.)

The situation is much more dire up in Thousand Oaks, where Mark Adler runs North Ranch Cleaners. He says business is off as much as 12 percent due to layoffs at Amgen, Countrywide, and all the realtors who've gone under. "The only thing I've got left in full force is police, fire, and military," says Adler, who's concerned that clientele might disappear as well, if governments cut back due to lower tax receipts.

BUT HERE'S THE KICKER
Business is dropping as costs are rising for things like plastic (Adler gets his petroleum-based plastic covers from Korea and says they're costing 4 percent more this year), and hangers. Yes, hangers! Turns out there is no longer any domestic hanger production! Most hangers now come from China, and Adler says the U.S. is slapping on a 13 percent tariff on Chinese hangers. Dry cleaning held hostage by a hanger trade war! WHO KNEW?

I'd say rising costs plus falling business put the "dry" in dry cleaner.

"I know business is down when competitors start walking by to see what we're doing, see how much clothes are on the rack and everything else," says Adler. I asked him if that is starting to happen. "Oh yeah."

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