Posted Dec 5, 2008, 2:27 PM
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Join Date: Aug 2006
Location: Downtown Los Angeles
Posts: 20,701
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Recession may change retail landscape across America
http://deseretnews.com/article/1,5143,705268150,00.html
While cautioning that the current economic woes will last at least a couple of "ugly" years before there's a recovery, the leader of Zions Bancorp.'s wealth-management arm said Thursday that the longterm ramifications of the downturn will "reshape the topography" of American retail.
George Feiger, chief executive officer of Contango Capital Advisors Inc., said Americans, strapped with credit troubles and struggling to repay debt, will consume less in the future. As a result, the country will need 10 percent to 15 percent less retail space, such as strip malls and department stores, and a corresponding decrease in the number of retail employees, warehouses and delivery and support systems.
"If you take this in, all of the sudden you'll realize, apart from its other ramifications, the whole landscape of America you've driven through to get here — the shopping malls, the department stores, the restaurants — all of this was essentially based on credit, on consumer credit, being able to consume 70 percent of GDP instead of 60 percent of GDP," ...
related: Sears Grand closing in American Fork
http://www.heraldextra.com/content/view/291230/18/
Sears Holding Corp. is closing its Sears Grand store in American Fork - one of 22 underperforming store closures it recently confirmed - as retailers nationwide battle one of the worst consumer spending environments on record...
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