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Tuesday, July 22, 2008 , 12:00 a.m.

Chattanooga: Candy sales remain sweet spot in economy

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Shannon Graves’ two young daughters spotted the candy store, they both squealed as their mother followed them into the store.

Less than $7 later, the mother from Jackson, Tenn., had a bag of sour gummy worms and was on her way to the Tennessee Aquarium with two happy children.

Despite a slow economy and talk of a recession in the national economy, scenes like this one play out almost daily at Candyland on Market Street downtown.

Owner J. Maddox has a theory about why.

“Candy has a small ticket price,” he said. “People that may not have money for other things will have money for a small treat.”

Staff Photo by Angela Lewis -- Hallie Daniel, left, and Karsen Daniel shop at Candyland on Market Street.

It is not only happening in Chattanooga. Officials with the National Confectioners Association say they are noticing the trend nationally as well.

Americans spent more than $29 billion on candy in 2007, according to the confectioners’ industry group.

“Candy is an affordable luxury. While many people have to cut back on some luxuries — buying new cars, taking vacations, etc. — most people can still find money in their budgets for the occasional candy purchase,” said Susan L. Fussell, spokeswoman for the NCA. “There are very few luxuries that cost so little and make us so happy.”

Business at Candyland has not grown in the past year, but Mr. Maddox said he is thankful sales are not down at his store, where the average transaction is around $6.50.

“With gas being more than $1 more a gallon than last year, my sales have stayed flat, and I think that’s a good thing,” he said.

Just up Market Street at Fudgewrights, the story is pretty much the same for owner Roger Wright, who opened the store more than seven years ago. With 75 percent of his sales coming from tourists who are visiting the Tennessee Aquarium across the street, he has seen a slight drop in sales as tourist traffic declines. So far this year, he has done about 80 percent of the business he did last year, he said.

People are going to buy candy anyway, especially if they are on vacation, because it is an indulgence, Mr. Wright said.

At Mr. Maddox’s store, most bulk items like jelly beans or chocolate-covered peanuts cost less than $2 a qarter pound, and a dime will still buy a single piece of candy.

His store sells many varieties of candy that gained popularity during the Great Depression, such as Red Hots and Boston Baked Beans. Those candies were popular because people didn’t have a lot of money, but they may have had some loose change in their pockets. Also, for many people, Mr. Maddox said, candy is the first thing they developed a loyalty to, and buying those things as an adult can give them comfort.

“I think that’s how candy has survived the bad times,” he said.

Candy


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