Tight-fisted consumers, plunging sales and shuttered stores. That was pretty much the retail story during the bulk of 2008 and 2009, when a drab market brought the headaches of overcapacity, liquidity problems (in some cases) and a round of consolidation.
Will 2010 be better? To a degree. A lot of excess inventory has been drawn down, aligning supply with demand. Analysts hold up Starbucks, Foot Locker and Jones Apparel as healthy companies that are getting healthier because they've been smart enough to rid themselves of excess by shutting down locations.
Most economic forecasters are anticipating a modest recovery this year. That, combined with consumers' voluntary rationing during the last two years, could spike demand for more goods. Industry economic consultant Retail Forward, part of Kantar Retail, forecasts 1.5 percent to 2 percent sales growth during the first half of 2010, with a pickup to 3 percent or more during the second half. That's promising but still below pre-recession levels.
0 comments:
Post a Comment