Retailer Survivors Like a Deep Recession
A timely and thoughtful piece from Jeremy Warner in the Independent argues the case that retailers who survive the recession / depression / slump will emerge much stronger…
We’re a few days into the season in which retailers announce their Christmas trading results. As expected, the results are mixed, though none so far seems as dire as the worst predictions of investment analysts might have suggested. More retailers - including well-known names - will go bust in the coming weeks. But then what happens?
I buy into the argument that retailers who conserve cash and operate efficiently stand to benefit in the long-run from the recession. As Warner puts it:
“Survivors like recessions. It makes them more dominant still”
The survivors will benefit from:
- Better bargaining power with landlords to negotiate better rents
- The pick of the empty retail space being vacated by fallen retailers
- Less competition in their segment
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