I picked up a copy of The Wall Street Journal on Friday after school. I read most of the publication and by the time I finished was in absolute shock...are the retail markets on that serious of a downturn? I mean, I knew the markets were doing poorly, but when I took the time to think about the implications of the satistics...and of course the media only tells partial truths and they won't use the word recession yet, because it is a verbal economic bomb - but the U.S. economy is in recession and has been on a downward spiral ever since 2001. The S&P Retail index has fallen 29% over the last 52 weeks and the retail market is not the only one sinking...what about the housing crunch? The third quarter of 2007 had the lowest percent of people applying for mortgages since 1989. People aren't buying anything, whether it is products or services. Right now most people are wearing the mental card guard, the one in the back of your mind that reminds you of the bill before you swipe.
Retailers say that they "haven't faced so many difficulties since the deep economic downturn 1990-1991 which pushed many off track" (TWSJ, p B1). These dates all have a similar theme. This all might make sense when you examine our political encounters, both past and present. I believe politics are related to everything we do. Capitol Hill has controls on many aspects of our lives. Lawmakers in create the grounds for business and the markets to operate by.
So, ... What do retailers need to avoid economic recession in 2008? 2008 Elections and a miracle.
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