Tusco Display blog
Tusco Display blog


More Stores = More Sales

From what I see and hear, retail store openings will doubtless grow in 2010. Does anyone doubt this? It’s a good time for retailers for several reasons:

(1) Retailer balance sheets are improved from a year ago.
(2) Landlords remain in weakened states due to
(a) lots of empty inventory,
(b) heavy debt loads, and
(c) dwindling property values.
(3) Retailers can drive better bargains with landlords for more or better space.
(4) Retail sales (US) grew an estimated 1.8% over the holidays.

This bodes well for brands seeking to grow – or at least maintain – share of market. And as stores expand or upgrade, store fixtures need expanding and upgrading, too. That’s good news for at-retail experts like Tusco Display and the point-of-purchase industry as a whole.

Granted, this year will look terrific compared to 2009 but will surely pale in comparison with 2011 as job growth accelerates, consumer confidence grows and the economy finally rebounds. We’re moving from days of the Vicious Cycle (declining home values = less consumer confidence = belt-tightening by consumers = belt-tightening by companies = job losses = less consumer confidence) to a Virtuous Cycle (improved profitability = business expansion = more hiring = more consumer confidence = retail sales growth). I like this new cycle a lot more than the last one. How about you?