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-- Posted Thursday, 19 February 2009 | Digg This Article | Source: GoldSeek.com
Rick’s Picks Thursday, February 19, 2009 “Phenomenally accurate forecasts” My wife does most of the grocery shopping, but on my last few visits to Whole Foods and Safeway, I was dismayed to find that some of the things she had sent me to buy were unavailable. The shelves where I might have expected to find these items, including fruit juices, canned soup and crock mustard, were bare. I assumed that there had been a run on them, perhaps because they had been heavily discounted. However, now comes word on the evening news that some major purveyors, including Kraft and Sarah Lee, are cutting back on selection by focusing on the brands that sell best. Signs of scarcity are not confined to branded products, either, since both stores have noticeably thinned their usually burgeoning produce bins so that they are less cornucopian. The grocer told my wife that this greatly reduces waste, and that every penny counts because profit margins in the produce aisle are so thin.
As the economy grinds lower, we see evidence nearly everywhere that the retail landscape is undergoing a sea-change. It is difficult for us to imagine which stores will survive, let alone flourish, since even Wal-Mart is struggling to keep up its numbers. Department stores must be at the top of the endangered stores list, since it seems increasingly obvious that there will be enough business over the next year or two to keep all of the higher-end operators afloat. Neiman, Saks, Nordstrom’s, Macy’s: Which one will be the first to bite the dust? It took the local mall five years to find a tenant to replace the defunct Lord & Taylor, but if a second department store were to close, it would probably turn a corner of the mall gangrenous. Diners’ Last Fling? It disconcerts whenever a luxury-goods store closes and an earring emporium or a Footlocker takes its place. Is American affluence ebbing away before our very eyes? It certainly seems that way. Retailers have always struggled with the economy’s ups and downs, but this time it feels different. This time the struggle is life-or-death, and those who have survived so far must be sorely distressed to see no evidence that a turn is at hand. Inexplicably, there was a 90-minute wait for dinner last Friday at Laudisio’s, one of Boulder’s most expensive restaurants. A cheaper alternative, Pasta Jay’s, was packed to the walls. Are those of us who are still employed having a final fling? *** Rick's Picks publishes a daily trading newsletter for gold, stock, commodity, and mini-index traders 240 times per year. Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers' initials will be used unless express written permission has been granted to the contrary. All Contents © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Thursday, 19 February 2009 | Digg This Article | Source: GoldSeek.com
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