Wednesday, 27 May 2009

Retail stalwarts expected to gain sales from fallen rivals

i.e betting on the upside…?
Trusted retailers are expected to gain the business lost via 100 rivals going bust since 2008. This means the big guys in many categories will get bigger (and tougher) as the market moves out of recession. This assumes that that demand returns to pre-recession levels, and consumers do not keep the 'making do' habits being adopted to survive in the short term….
It also assumes that multiple 'grocers' will resist the temptation to cherrypick the best parts of the non-food categories…
We feel that because of their efficiencies and speed of rotation, the mults will recover faster than non-food retailers, scoop up the best of the newly available 'busted business' and will then go for the traditional trusted retailers, big time…
Their low price, value-for-money approach will appeal to shoppers emerging from recession and thereby neutralise any resistance from those politicians that have not retired to spend more time with their expenses…

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