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Forget the Bottom - Where's the Top?
Christine Hamilton - November 2008 Edition
IN
THE RETAILING SECTOR, HORRIFIC PROJECTIONS FOR HOLIDAY SHOPPING and
plummeting consumer confidence are causing many analysts to ask,
"where's the bottom?" - in other words, how bad could this
picture get? We all agree that the bottom hasn't been glimpsed yet,
and that there are near-term issues that every retailer - in every
sector of the industry - is going have to work through. But
longer-term, my team is beginning to look at the potential of the
top in 2010-2011, and we're not finding much positive news. In Aristeia's latest FutureCast™, we
look at the recovery curve from the Credit Crunch of 2008 and
provide insight, guidance, and long-range planning tools for
retailers looking to build a sustainable, defensible business model
for the next decade. Unfortunately, that process must begin with the
dissolution of some long-held notions of economic recovery and
growth in a post-recessionary environment. Unlike the previous two
modern-era recessions - 2001-2003 and, prior to that, 1990-1992 -
the path out of the current recession has a very different
trajectory and ends in a very different steady-state economy.
(clients,
read more here)
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