STORES Magazine - December 2008 - (Page 79)

CONSIDER THIS / LOEB RETAIL LETTER Copyright 2008 by Loeb Associates Inc. Used by permission. The Post-American Economy BY WALTER LOEB During the current consumer recession I have been searching for clues as to when we might see the end of the tunnel – the point at which job creation would be visible and consumer confidence begins to rise. I have hopes that this will happen next year; that certainly would help the retail industry. I also hope that lower energy costs will encourage more consumer spending in stores. I also believe that a stronger dollar versus the euro will encourage more spending in Europe by Americans, thus helping economies on both sides of the Atlantic. In trying to understand the problems at the core of the current economic situation, I found that Fareed Zakaria, author of “The Post-American World,” may have some of the answers. He has clearly described a loss of the United States’ competitive power and sees a shift of leadership toward emerging countries like India and China. This thesis is not unlike Oswald Spengler’s vision in 1910 when he wrote “The Decline of the West” or that of Arnold Toynbee’s “A Study of History.” Walter F. Loeb is a New Yorkbased consultant and member of the NRF board of directors whose newsletter is published monthly in STORES. I believe that we must create opportunities for growth in technology and bio-sciences and provide the innovations that will drive growth in areas like computer science and medicine. The United States possesses the creative power and we must use it to re-engage with our global neighbors. International prominence Then it was a general prediction of the emergence of the less-developed countries taking the leadership from the West. Today it is more focused, with evidence that countries like China have carefully placed seed money in Africa and other emerging regions in order to establish favorable relationships that could create roles of strong influence for them. Zakaria, editor of Newsweek International, writes that the United States has been slow to move while other countries have gained strength and leadership roles. He believes that as a super power, we need to cooperate with other countries and, through consultation, retain some of our international prominence. He repeatedly cites India and China as countries that have gained influence and clout. The book points to lack of leadership under the outgoing administration and argues that President Bush’s foreign trips seemed designed to require as little contact as possible with the people of the countries he visited, in stark contrast to his predecessors. Global momentum We have lost global momentum in the last eight years, and this has contributed to the downward spiral of our economy. The recent actions to prop up the financial markets of the world show just how interconnected we are with countries and economies across the globe. I believe that we must create opportunities for growth in technology and bio-sciences and provide the innovations that will drive growth in areas like computer science and medicine. The United States possesses the creative power and we must use it to re-engage with our global neighbors. I believe Mr. Zakaria’s book is worthy of your attention. STORES / DECEMBER 2008 79 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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