The recession has claimed another victim: Chocolate.
Hershey has decided to shutter its Web site and catalog businesses, effective at the end of the month.
“It’s a strategic decision to exit the Hershey gifts business,” said Hershey spokesman Kirk Saville. “The present business model is not sustainable.”
It’s a sad reflection on the economy, but here's the upshot for consumers: They’re having a clearance sale at hersheygifts.com — All chocolate is 25-percent off!
So, quick recap: That’s lobster, wine — and now chocolate — that have seen drastic price reductions since the recession began.
It may seem like a crazy move in the year 2009 to ditch your Web site and keep your brick-and-mortar stores. But Steven Ralston, senior analyst at Zacks.com , said it was actually a pretty smart move.
“They’re cutting costs,” Ralston said. “And they can revive the business at any time if the economy gets better.”
Hershey’s problems started long before the recession but just got worse as the economy sank deeper into recession, the analyst explained.Page 1 of 3 | Next Page