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Showing posts with the label Over-stored

Why the End of the Recession Could Bring Hard Times to Cause Marketing

The end of the recession could bring new challenges to cause marketers. I don’t think I’m looking too far ahead, either. The Index of Leading Indicators turned slightly positive in April, suggesting the economy has troughed. If history holds, economic growth is somewhere between one and four quarters away Stateside. Although I think I can make a good case for cause marketing now while still deep in the recession, I believe we may emerge from the recession with a different environment for cause marketing. Here’s the reason: America has too many retail stores. Retail analysts say that more than 200 of the nation’s 210 DMAs (marketing speak for 'designated market areas') were ‘fully stored’ in 2007! For most chains growth by adding stores has long since ceased to be a prudent strategy. A number of retailers, unable to secure credit terms, are giving off a death rattle including Barneys, Blockbuster, Eddie Bauer, Claire’s Stores, Guitar Center, Michael’s Stores, Rite Aid. Block...