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from the Gartman letter:We suspect that the likes and highs of Tiffany’s, or Harley
Davidson, or Nordstroms will never be seen again in
our lifetime, and that the Wal-Marts and Family Dollar
Stores will be the long standing beneficiaries. As Ms.
Kathryn Tesija, the Executive VP at Target said in an
interview with “The Wall Street Journal”,
The current economic conditions have created
a fundamental shift in shopping behavior [and]
we are allocating more shelf space to
nondiscretionary categories.Target “gets it. Tiffany’s can’t “get it” even ifmanagement tries for they are on the wrong side ofeconomic history. Small banks and Family Dollarstores cannot help but be on the right side of the tradeas demand deposits soar at the former and as whatdiscretionary spending does develop will find its wayfirst to the lowest rung of the retail ladder. As we arewon’t to say, we know few things about recessions butwe know this, “Retail goes downscale.” In thisinstance, however, even post-recession we suspectthat retail will remain down scale and that savings rateswill rise, with the small banks being the beneficiaries.
Target “gets it. Tiffany’s can’t “get it” even if
management tries for they are on the wrong side of
economic history. Small banks and Family Dollar
stores cannot help but be on the right side of the trade
as demand deposits soar at the former and as what
discretionary spending does develop will find its way
first to the lowest rung of the retail ladder. As we are
won’t to say, we know few things about recessions but
we know this, “Retail goes downscale.” In this
instance, however, even post-recession we suspect
that retail will remain down scale and that savings rates
will rise, with the small banks being the beneficiaries.
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