SYSTEMATIC CHANGE! . . . OR BLIP?
|In retail's downward slope, it's Harold Bordwin of KPMG Corporate Finance who must devise a survival plan to keep retailers in business. Many don't know they need to be conservative, he says, yet don't have the experience to project future customer traffic and revenue in light of the recession. They're looking to reduce occupancy costs, but some landlords are concerned that retailers are taking advantage of market noise to receive rent reductions. Landlords should work with retailers to avoid vacancies in a market where few retailers are expanding, he urges.|
|Dollar, concept, and bargain stores are doing okay, but other retailers need to think about cutting costs and remerchandising. The big question: Will the impact of the recession result in a systematic change, or is the consumer spending decrease a blip? If it's the latter, just hang on, he says. Consumers are becoming more conservative and holding less debt, with savings growing, and retailers have to account for their changing position.|