STORES Magazine - December 2008 - (Page 22)

EXECUTIVE SUITE / COVER STORY BY SUSAN REDA, EXECUTIVE EDITOR W hat’s going to happen to the retail industry – and the economy more broadly – next year? After the unprecedented bailout of 2008, wild fluctuations in the world’s financial markets and a downward spiral of home values and investment portfolios, weary retail executives and disheartened shoppers would rather dodge the question than answer it. The outcome of the presidential election has given the nation permission to believe in the power of change, yet many are still trying to keep fear and uncertainty in check after being rocked back on their heels by the events of recent months. Will 2009 be different? Is it possible to restore consumer confidence to respectable levels, thaw the credit markets and get the economy humming? The answer is “Yes.” Consumers will begin to feel more confident in the months ahead and will see clear to reopen their wallets. The credit markets will loosen, and it certainly seems like we’re on the brink of a new economic infrastructure. What’s important to remember, however, is that while things are poised to get better, we’re not going to revert to the way things were. A new “normal” will emerge in 2009 as retailers and consumers recalibrate their values and rethink their expectations. Already, it’s possible to detect subtle-yet-substantive shifts in attitudes toward spending and saving, and the corporate mindset with regard to sustainability, optimization and transformation. When President-elect Obama moves into the Oval Office he will be confronted with slow growth, high unemployment and an economy teetering toward recession: No one should be envious of his Inbox. Yet after talking with economic experts and retail luminaries, one gets the feeling that old assumptions about the economy and the geopolitical scene are being kicked to the curb and that tremendous opportunities lie ahead. The new year will be a time for retail executives to make investments that will position their companies for growth eight, 12 or 18 months from now, a time to challenge old ways of thinking and to foster a culture of innovation. So, what do the editors of STORES believe will happen in 2009? Keep reading. Shoppers are looking for an antidote to gloom: Retailers that provide it will keep POS units humming. hoppers will have a different outlook for 2009. The free-wheeling approach to spending is a thing of the past. That’s not to say they won’t plunk down $400 for a designer handbag, but if they do it will be their handbag purchase for the entire year. There’s a movement taking root that can best be defined as “cheap is cool.” Shoppers feel guilty about wearing pricey suits or expensive shoes so they’re making tradeoffs and opt- S 22 STORES / DECEMBER 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - December 2008

STORES Magazine - December 2008 Contents Executive Editor's Page President's Page Wrap Rage Unraveled What Shoppers Think Courting a Comeback 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Navigating the Road Ahead Website Strategy Concept2Watch Online Customer Service International Marketing Green Retailing Online Merchandising Signage Operations Online Strategies Pricing Strategy Kiosks RFID Human Resources Loeb Retail Letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - December 2008

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