In Resort Towns, Locals Feel the Pinch

MARK HAMSTRA

CHARLESTON, S.C. — Although the slumping economy has not had much impact so far on the tourism business at the resort towns that line the South Carolina coast, that doesn't mean the shoppers there are immune to the pressures.

“For the full-time residents, we are seeing an impact,” said Diane Colgan, vice president of marketing at Piggly Wiggly Carolina, based here. “We see some trading down of items they are purchasing — they may not be buying as many indulgent items. People make sacrifices to buy what they think is important.”

Instead of having wine with dinner a few times a week, for example, she said, consumers may be cutting down to once a week or so.

Piggly Wiggly operates several stores in South Carolina's coastal resort towns, including its upscale Newton Farms banner in Kiawah Island, and its new prototype in Myrtle Beach, where it also operates several other stores.

The company has been somewhat more aggressive in its promotions and has been careful about raising prices as costs from suppliers increase.

“We promote some of the staples, and the things that people are more price-conscious on,” said Colgan. “People across the board are looking at pricing. Milk has gone up and eggs have gone up, and people are aware of it. We have had to be very careful in all of our stores on all of those items.”

In the company's latest prototype, meal solutions and prepared foods are an important part of the mix, and Colgan said she thinks supermarkets might have an opportunity to capture share from restaurants.

Although Piggly Wiggly does some price promotions, Colgan said the chain doesn't stray from it's core positioning.

“The economy will turn around,” she said. “You weather those storms and then come out of it. You have to be flexible and stay in touch with the needs of the customer, but you can't redirect everything that your company stands for.”