The economic downturn is forcing highest number of retail store closings in 4 years. Retail chains are shutting down some mall-based locations but some businesses are eager to move into those vacant storefronts.
These non-traditional businesses focus on an experience, rather than products and they have become the darling of mall operators who are nervous about declining mall traffic and sales, on top on rising retail store vacancies.
It could be the way to go, especially in a recessionary environment. Studies indicate that spending on entertainment and self-improvement services tend to be fairly recession-proof.
If you have a retail store you intend to close it, why not think out of the box and give customers an unique experience?
Though times are tough now, Americans believe the economy will bounce back by next year. A poll showed 60% of respondents think economic conditions in the United States will be “good” next year.
Most people realize that the economy has cycles of ups and downs. Fortunately, the last two recessions were some of the shortest on record, so in 2009 we should be pulling up out of this. Most Americans feel the economists are right.
83% said they are “confident” of maintaining their standards of living next year, and 85% are “confident” they will keep their jobs over the next six months. Consumers also showed faith that they would be able to pay off their future debts, with 90% of respondents demonstrating confidence they would be able to meet their monthly mortgage payments for the duration of the mortgage.
Other debts like college loans, car payments, and credit cards are in no danger of being defaulted too. The average amount of credit card debt of those polled was $4,000. The Fed’s rate cuts will start to take their toll later this year, and hopefully, the economy should bounce back by the end of 2008.
Everybody is concerned about the weak dollar. But even as the greenback sinks to new lows against the euro and other global currencies, experts say this is not necessarily a bad thing for the U.S. economy.
The falling dollar pose problem for an economy in recession and facing higher inflation. Consumers have to pay more for imported goods like toys made in China or a bottle of wine from France’s Bordeaux region.
It also drives up the cost of commodities priced in dollars. And unless you’ve been living under a rock, commodities have skyrocketed to historic highs.
Confidence by international investors in buying dollar-denominated securities is also affected. Although many foreigners are still buying more U.S. securities than they are selling, there are signs that these investors are slowly shifting away from assets tainted by the greenback, such as U.S. Treasurys.
