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Amid Sour Economy Pet Industry Soars

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ORLANDO, Fla. -- High gas prices, falling retail sales and a troubled housing market have all combined to batter the economy. But one industry is actually soaring.

At the recent Pampered Pet Expo in Orlando, credit card machines hummed along in booth after booth as pet parents shopped for various products, including fancy cat trees, organic pet food and clothing.

“We don’t skimp on our dogs,” pet parent Jamie Ruley said. “They’re our kids.”

Experts say pet-related expenditures should reach a record $43.4 billion this year. But for the rest of the economy, things aren’t so rosy.

“The sub-prime mortgage crisis that’s led to the credit crunch and turmoil in the financial markets, throw into the mix the rise in energy prices, and you’ve got sort of a toxic brew,” economist Sean Snaith said.

According to the Commerce Department, retail sales continue to fall after taking a decisive tumble in February.

While the overall economy continues to limp along -- with only an annual growth rate of 1.9 percent in the last quarter -- Standard and Poor’s predicts the pet industry will grow by 5.3 percent this year, and by at least 5 percent annually over the next five years.

“We did our homework before we did the show to see, is there a market out there for this and there is,” Pampered Pet Expo organizer Jackie Mackay said.

Snaith says the numbers reinforce the special place pets have in our society.

“There’s an emotional attachment that doesn’t apply to flat screen TVs or other types of expenditures,” Snaith said.

The economic downturn has forced some pet parents to spend less on themselves.
“We cut back,” Ruley said. “We sale shop and use coupons now a lot more than we did.”

The quest to save money is paramount to most consumers being pinched in the middle, and it sometimes leads to changing behaviors.

“We don’t go out very much for dinners anymore and I’ve cut back a lot, buying more groceries instead of eating out,” pet parent Sandy Bourdon said.

But consumers are reluctant to curb their spending when it comes to their pets.

“They get new toys all the time and they still get their treats and we still get premium dog food,” Ruley said.

While owners deprive themselves of dining delicacies, it seems Fido and Fluffy are still chowing down uptown style and sitting pretty.

“Nothing has changed with them,” Bourdon said. “They still get the best, the best dog food, the best toys.”

It’s that kind of devotion that has fueled businesses like Mr. Barksmith’s Cool Treats.
“Our business is booming,” Cool Treats owner Joy Carter said. “We can hardly keep up with the demand.”

It’s the same for the dog training company, Sit Means Sit, which has more than 80 offices across the country.

“It’s just gotten bigger and bigger every year, so it really hasn’t affected us at all,” C.E.O. Fred Hassen said.

And economists don’t see that trend changing anytime soon.

“We have a strong affinity and affection and consider these pets as part of the family,” Snaith said. “So it’s not like it’s an expenditure that you can easily cut out.”

Pampered Pet Expo organizers say the event was such a success, they have already finalized the dates for next year’s event.

Tell us what you think about “Amid Sour Economy Pet Industry Soars” below. Share your favorite videos by clicking on the ZootooTV tab. Send us your story ideas by e-mailing us at news@zootoo.com or by calling us at 877-777-4204.



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138 comments found.
 
Anonymous
Anonymous
1 year ago
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fredhassen
fredhassen
1 year ago
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Here is a photo of my dog 'Rex', jumping over one of our people (Dave Skoletsky), who is seated in a chair at the pampered pet Expo.


Fred Hassen
www.sitmeanssit.com
 
kitnpup31605
kitnpup31605
1 year ago
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This is interesting! I've seen so many strays lately. They said on the news that a lot of people are turning their pets over to shelters or dumping them because they cannot afford them in this weak economy.
 
Chris
Chris (animaldaddy)
1 year ago
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I'm shaking my head at this article. There are so many strays running around the nation, yet we are spending money that should go to rescuing & saving pets on high-priced pet stuff. I say there should be more affordable products available so everyone can participate. For the super rich who want to indulge donante back to save innocent lives from being ended everyday.
I can't see spending hundreds of dollars on anything for anyone when there is always an affordable alternative.
 
kitnpup31605
kitnpup31605
1 year ago
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The Pharmaceutical Industry is BIG PHARMA even when it comes to pets. Food can be bought cheaply and many save even more money making their own. A lot of people started doing that after the Food scare when the rat poison killed so many pets. It's not the food so much as it is the medications in my opinion. The average pet owner usually can't afford to provide Heartworm preventative for their animals. Does this mean only the rich should have pets? Does that make someone a selfish, bad pet owner because they might not be able to afford all the bells and whistles?

 
kitnpup31605
kitnpup31605
1 year ago
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Just a note* I did not survey Pet owners in America to come up with that average but in my experience(which is small in the grand scheme of things) You average working class/Middle Class pet owners couldn't quite fit certain medications and treatments into their budget.
 
fredhassen
fredhassen
1 year ago
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Here is a video that we shot at the Pampered Pet Expo. It's on how to housebreak your dog. :-)
www.sitmeanssit.com
 
terrae01
terrae01
1 year ago
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This is a good article for my research on starting a pet based business.
 
fredhassen
fredhassen
1 year ago
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Here is another one of our dog training videos from the Pampered Pet Expo.
www.sitmeanssit.com

Fred Hassen CEO/Owner/Founder
Sit Means Sit Dog Training
www.sitmeanssit.com
 
Sydney  S.
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This is something I definitely need to research soon when I move to go to college.
 
fredhassen
fredhassen
1 year ago
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Here is a picture of one of our 'Sit Means Sit' dogs showing people at the Pampered Pet Expo some of our videos from youtube on an Iphone. The dog is sitting on the table at our booth. You have to scroll to the bottom of this page to see the pic.
www.sitmeanssit.com

Fred Hassen CEO/Owner/Founder
Sit Means Sit Dog Training
80 Locations to serve you.
 
sweetangel0420
sweetangel0420
1 year ago
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I wish these pet expos were closer to me so I could pamper my babies. We only have a Walmart here and one pet store that mostly has fish stuff.
 
fredhassen
fredhassen
1 year ago
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Sorry, here is the link to the video of part of our performance at the event.
www.sitmeanssit.com
 
fredhassen
fredhassen
1 year ago
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Pampered Pet Expo was fantastic, and one of the best organized events that we have been to. Everyone was very nice, and lots of information to share from all walks of life in the pet world! Thought I would share a video of part of our performance at the event. www.zootoo.com

Fred Hassen CEO/Owner/Founder
Sit Means Sit Dog Training
www.sitmeanssit.com
80 Locations to serve you!
 
PJ W.
PJ W. (pj0908)
1 year ago
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Retail therapy. Gotta love it.
 
cathy10
cathy10
1 year ago
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Sorry to hear this!!!
 
Katy
Katy (goughballs)
1 year ago
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I love that people don't skimp for their pets!! I find myself always shopping for my kitty kids!
 
Crystal C.
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I am one that pampers my pet way too much, but I just can't stop. My dog has two dresser drawers full of clothing and a big basket full of toys. I just keep buying and can't stop myself. My dog is my child and I think he deserves the world. It's kind of sad but I would rather buy him something then myself.
 
Brian D.
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Yes I would go without so my little kitties do not have to
 
Bridget
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I just hope animals don't get neglected when it comes to a new ipod or pet food.

I really hope there is more adoption going on, too, not just buying from breeders. Adoption is the way to go.
 
Christine
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This doesn't really surprise me as it seems people love to spoil their furbabies, regardless of the economic crunch. They'll cut out entertainment, dinners, movies, etc., but the pet still seems to get top rated care!
 
Heather
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People are making clear their priorities! That's one of the great things about capitalism I suppose.
 
jerZgirl
jerZgirl
1 year ago
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I don't want to hear people complain about how high gas is, or mortgage rates or how they cant feed their kids if they are driving around in a brand new pickup or SUV and buying crap they don't need.
 
Debby
Debby (zennla)
1 year ago
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I make sure my animal kids get the good food and they have a nice variety of toys but I am not going out and buying things that are not a necessity for them. There are always those that will go overboard with their spending on their animal kids..
 
Christine
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I agree, my furbabies get spoiled, but I don't buy them all of that stuff that would really be just for me. They don't care about the fancy collars, clothes, etc., just food, love, treats and toys!
 
Anonymous
Anonymous
1 year ago
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MOM ..
MOM .. (Twocatmom)
1 year ago
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We think of our animals and our children. We pamper our children and that includes our pets.
 
Cheryle D.
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You know, that big screen TV can't give you a snuggle when you're feeling down, or jump up and down when you walk through the door, but those precious babies can! I would chose my pets over any luxury there is. I want them to have the best care, food, toys and life. And I really think most people that have "pets" do too. Those people that have "animals" aren't as concerned.
 
kate h.
kate h. (keh611)
1 year ago
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I definately still do all the things that I have always done for my pets, and maybe even more. They still get thier treats everyday and thier favorite foods. All my babies also get new toys at least once a week. They are very important to me.
 
Kelly
Kelly (Bubbled26)
1 year ago
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I think it's wonderful that so many people pamper their pets, now if we could just get the people who abuse their animals to change their ways. I am interested in going to this pet expo next year, it seems like great fun!
 
cathy10
cathy10
1 year ago
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It is easy to save if you just look.
 
sharon d.
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My babies get good food,care,treats,toys,but I'm realistic about it and don't spend a fortune ,I look around and spend wisely.
 
Anonymous
Anonymous
1 year ago
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kadiquilts
kadiquilts
1 year ago
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Guilty as charged! Only the best for my dog--she is family......and why not? They give back so much......and you can't put a price on that!
 
Carol Ann
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I don't spend money on toys but I always make sure I have something for food and special treats like greenies and dog biscuits.
 
ME
ME (casia68)
1 year ago
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I buy things for my guys all the time. With economy being the way it is, I take away from myself before I would take away from my family.
 
Kim H.
Kim H. (kimberh73)
1 year ago
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I like buying my pets stuff to, but most the time I think they cost too much. They seem quite content with the toys they have. I just really try to watch my spending as much as possible because times are hard all the way around. I do however want to get them some rawhide to chew on. Stella loves this and with her staying in a cage for her knees I think this would help her pass time. Does anyone know of any good ones to get. I see signs in the pet stores that say don't buy certain rawhide because it can cause dogs to choke, so I am afraid to buy them anymore.
 
Christina
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I think it is deffintly becuase most of us do see our pets as our "kids". And I think many most likely with the strugling economy parents are also not "skimping" on their own children. As an adult it a lot easy to spend those extra few minutes to utilize more coupons, decide to cook more meals at home and go out to dinner less, decide you do not need designer clothes and accessories. However, you would do your best to not lower your children's nutrition - and not down grading your pet food is the same thing. And of course you would still want your children to have good birthdays and christmas's. So really this should not come as a shock.
 
ChicoanVolunteer
ChicoanVolunteer
1 year ago
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It's great to hear that people aren't skimping on their pets! I defiantly haven't cut down on pet supplies, in fact I'm buying more- as donations to the Humane Society!
 
Jennifer S.
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You know continuing to spend money on our pets doesn't really seem like too much of a surprise. Our pets are our family, so we are always going to want to make sure that they are happy. Even though we don't have a lot of money, I do still try to keep my dog well pampered. For example, I do buy him new toys every once in a while, or buy him new tasty food to try. Even though I continue to spend money on my baby, I do try and get good deals. For example, a lot of the toys that are summer themed are super cheap right now. Also, I try and use coupons when I can. If you take the extra time to do some research, you can still pamper your pet, but keep more money in your pocket.
 
daryl b.
daryl b. (darylob)
1 year ago
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at least my boys don't like toy change. their favorite canned corn is the cheapest brand. green giant looks so wonderful but all they want is the cheap, cheap stuff. i am not complaining except that the cheap suff i won't eats so half the can goes bad before it is gone. they are also snooty about their bread only strohman white. no other brand no other color. at least this is what i eat. hail to my little feathered poopers
 
Michele
Michele (MicheleZ)
1 year ago
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Stroehman's (sp?) is definitely my favorite, too! Some brands may cost half as much, but have only a small amount of the taste... But I disagree about the Green Giant--I like most name-brand vegetables over the generic versions (which usually contain a significant proportion of stems, leaves, branches?, etc.)!!
 
Michele
Michele (MicheleZ)
1 year ago
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This isn't necessarily a long-term trend! And it isn't necessarily a positive one! It is possible that some compulsive buyers have shifted from buying for themselves to buying less expensive items for their pets--saving some money compared to the past, but still overspending and being compulsive about it. Other people may not be able to afford a tankful of gas for $50+ but do have $10, and that $10 can buy a dog toy--a form of short-term "fun".

Perhaps others are buying for the pets to go along with an apparent trend, as well as to give the impression of being able to afford luxuries for pets--the so-called "status seekers". Meanwhile, they may go home to the telephone being shut off and cable disconnected....and are possibly a paycheck away from foreclosure on their homes.

When places like Starbucks go under or have massive layoffs, similar service-type businesses will most likely also go under. So, perhaps some people gave up a latte this week and bought their pets a toy, but this doesn't mean they will continue to buy toys or luxury items for their pets in the coming weeks. I think the pet stores and manufacturers need to be cautious in what they are doing....or they could end up with A LOT of toys and miscellaneous pet items on their shelves.
 
cherries33
cherries33
1 year ago
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I agree Michelle. I also think it's possible that a very small portion of the population is indulging their pets to this degree. The more people who lose their house the fewer people who can convince themselves that everything will be OK if they can buy a fancy collar or toy.
 
cathy10
cathy10
1 year ago
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The economy effects pets too.
 
Kimberly B.
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We spoil our babies too, but we don't pay for their goodies with our credit cards.
 
Debbie
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Shows what we will do for our pets & how much we love them.
 
Anonymous
Anonymous
1 year ago
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sheri
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I buy more for my pets than I do for me.
 
Anonymous
Anonymous
1 year ago
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Anonymous
Anonymous
1 year ago
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sheri
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Yeah that is true.Spending alot on Flip so far for his new cage.$200 so far.he is the lucky one.No unleaded 11 for me this month:).
 
Lisa
Lisa (Spaceylisa)
1 year ago
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you know I keep hearing how bad the things are. Maybe because I live in a small town. But I really haven't seen any of it here. Everyone seems to be doing everything as it has always been. I love my 2 cats and I think if you own an animal it is a luxery and they should be treated as such. I hate people who own animals and don't take care of them. No health care , etc. Dying of such horrible disease like Parvo. I would rather see them going to this as in the stories. That is what they are for. To enjoy and spoil.
 
Michele
Michele (MicheleZ)
1 year ago
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They may be proceeding as though things are the same, but you won't be privy to their increasing credit card statements! Many of them may be going deeper and deeper into debt in order to maintain their lifestyles. Eventually, though, they will get shut off and others will be able to see the results.
 
cherries33
cherries33
1 year ago
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Many times that will be true. Since she lives in a small town, maybe it still lives by old fashioned economical values. Sure hope that is true. Wish it were true for all of us and our government too. Since I've spent 5 years with only part time work it sure isn't true for me any more.
 
Jennifer S.
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I am sure that some places are experiencing the crunch of the economy more than others. Still, there are ways to still take care of your pets and yourself without paying an arm and a leg. You just have to make sure that you are smart about your purchases. Also, try and get discounts when you can. For example, recently I bought some toys for my dog at PetSmart. On the receipt it had a survey you could take and get three dollars off your next purchase, so I did it. I ended up paying half price for the wet dog food we get for my dog. Little things like that can add up to big savings.

Oh, and I completely agree that pets are wonderful and deserve to be pampered. It makes me mad too when people don't properly take care of their pets. Why did you adopt an animal if you can't take care of it?
 
Lisa
Lisa (Spaceylisa)
1 year ago
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I like to see people taking such good care of their pets. After hearing so many stories of people just abandoning their pets because of finance problems.
 
Christina
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I think a lot of shelter's have seen an abundance of animals comming from foreclosed and evicted homes. There have been a lot of litters of pups comming into local shelter's because of it. It is so sad to think of people just leaving them when the move. I understand the financial crisis and that many don't know where they are going to go let a lone their pets. However, when you take on the responsiblity of a pet you owe it to him to care for him - the least you can do it take him to a shelter where he can find a new home.
 
Patricia  C.
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Maybe people are still spoiling their pets, but I think adoptions overall are down. People are hesitant to commit to the expense of an animal with the economy as it is. It is very expensive to care for an animal especially when you don't know if you will have a job next month.
 
Anonymous
Anonymous
1 year ago
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cherries33
cherries33
1 year ago
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And to make matters worse many folks are forced to give up their animals when they lose their jobs and homes.
 
Sparky A.
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I barely buy things for myself now. Most of the shopping I do is for Sparky and my fish. Forget Macy's and Nordstrom it's all about Petsmart now!
 
Anonymous
Anonymous
1 year ago
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Nelson M.
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It almost doesn't make sense, but there are a few factors that may explain why the pet industry flourishes while the economy is in the toilet.

Television shows like Dog Whisperer, Dog Town, and news coverage of abuse cases may be convincing people to work with their pets rather than give them up. We all must admit that we are a lot more dog savvy than we were just a few years ago. Likewise, more and more families live in multi-pet households, and the movement to make apartment buildings pet friendly has had some effect.

It would be great to think that more and more people are just more decent now.
 
Diane
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How great this news is.
 
Anonymous
Anonymous
1 year ago
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All good points and thoughtfully made, Nelson.
 
Diane
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ITA!!!
 
patty
patty (mikkizmom)
1 year ago
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Seems like everytime I go shopping I'm buying toys for my crew! But I must say, not into the clothing,they would "shred" it before it even gets on them.
 
I have literally not gone shopping for myself since I got Memphis. I definatly would have went to this expo cause shopping for Memphis is one of my hobbies lol. Its nice to hear that there are people who care about pets like we do.
 
Sue G.
Sue G. (wingett)
1 year ago
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I know I spend more on my dogs than I do myself every week, but they are worth it, they give me joy all the time just watching them and the unconditional love they give me, there is nothing like it. When I come home from work and they all meet me in the drive way to welcome me home, just to get their pats and belly rubs, that's all they really want, but occasionally they will get some treats or a new toy or two.
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