The retail collapse…

December 24, 2008

Everything-Desperate-shops-slash-prices-90-desperate-battle-survive

It appears Woolies will the first of many – as the consumer is forced to correct his/her habits to live within their means. Unfortunately this unwinding has great implications – as retail jobs and associated manufacturing/production economy jobs are lost. Which in term decreases retail demand [for impact see above] and increases the defaults on mortgages and unsecured credits – instigating another round of bank loses – who in term need to force liquidate further assets and contract investment [ if they survive!!! ]

This unwinding is going to have significant impact upon the nature of our cities, towns .neighbourhoods and villages – the pseudo public realm and pseudo community function played by the retail sector is going to diminish significantly – with the associated 2nd and 3rd order impact.

This correction is significant….unfortunately the transition will be very painful for us all.

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