News and Events
Let Realism Reign
Extremes of hope and fear are detours on the road to recovery.
Dec 15, 2010 Shopping Center Business Ivan L. Friedman
Many of us in the retail real estate industry today are reading the “economic tea leaves” in search of hints that the purported recovery is gaining momentum. All too often this can lead to a phenomenon in which people make a bit too much of seemingly upbeat news.
In recent weeks, for example, the business press has been full of stories touting the profitability gains made by some of the national retailers. Yes, this is good. But with the exception of the value-oriented chains and a select few others, these gains are due almost entirely to retailers’ successful efforts to cut their occupancy costs, tighten their inventories, slash their payrolls and, in general, run lean and mean. Is this really a sign of economic recovery?