Some Retailers Benefit from Crisis
While most retailers find their profits shrinking, there have been some big winners this holiday season. Most notably, those retailers known to offer low prices and affordable value have found their market share growing, at the expense of luxury and elite vendors. Walmart, for instance, reported that it has seen an increas in its sale of flat screen TV’s, one of the most desired and expensive holiday gifts.
More shoppers are also turning to non-traditional venues such as Ebay and Craig’s List to find merchandise at recession prices. We may see a realignment in the retail space in which luxury brands, which had experienced growth for many years, may be dethroned by value brands in the coming period. We will need to wait and see whether manufacturers and retailers can stay solvent selling goods at the razor-thin profit margins such venues provide.
Related posts:
- What Will Santa Bring Shareholders? Traditionally, we expect an end-of-the-year spike in stock prices. Investors are people too, and they are impacted by the optimistic holiday spirit. We also know that many people allocate their investment capital on...
- World financial turmoil affect crude oil prices Oil prices are now above $91 a barrel, after hitting the eight months low because of significant global economic concern, this concern limits to growth and undermines the global demand for crude oil...
- Leveraged Investments |Day-Trading | Current Economic Crisis Is Leverage Dead? The liberal use of leverage was a major factor in the current economic crisis. However, use of leverage can sometimes be justified for short-term, technical traders, provided it is paired...
Comments are closed.