Quote:
Originally Posted by graciegirl
Fewer SKU's is a result of the economic downturn. They buy fewer products and only the ones that turn faster. That is just good business sense.
Walmart and Sam's have ENORMOUS buying power so they can offer merchandise cheaper than smaller stores.
In this day and age I am looking for bargains whereever I can find them. Who knows what tomorrow will bring economically?
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I was thinking the same thing when I read your post. What non retail people may not understand is the trickle down effect of this economy on retail big box and specialty retail as well.
I have managed small stores, and have been in merchandise buying/planning side of big box.
If you go into Macy's or any large chain you will see much more of their own label, than in previous years. They commit to the volume and manufacture of the goods almost a year in advance of shipment. They have paid for this stuff and can't cancel the orders. They can cancel the orders for name brands. So when stuff isn't moving they cancel what they can and pricecut the private label (their own brands) to try and bring in the customers, they have better profit in those goods so they can.
The small stores can only cut their staff as they have high rents on their stores and not alot of profit margin to play with. As I am sure you have noticed (I don't know about the villages bubble) many small stores are closing.
Result layoffs of retail employees at all levels and also domestic manufacture (their isn't alot around anyway) and design. You may be supporting US workers even if the goods are made offshore as the designers and distributors may be US. But alot of these lines are high end. Tommy Bahama is an example that comes to mind.
More than you ever wanted to know, I run on sorry. Subject hit a nerve as I am a laid off retail planner. 
Trudy