The de-leveraging process for the American consumer continues and the trend is affecting retailing in a significant way. De-leveraging has been extended because of unexpected high unemployment, which under almost all scenarios will not decrease much through 2011. Some believe that it might be more than five years before the US reaches full employment.
In a partial response to the financial state of the US consumer, Wal-Mart is experimenting with reducing the size of its stores. The following article provides details:
These are a few of my thoughts on the subject of excess space in retailing, dating to 2008.
The US economy is undergoing change as it slowly recovers from a deep recession. These changes will not happen overnight. The public needs to be patient because there are no quick fixes.
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