Retail Reeling

Well, this is getting downright ugly.

New York Times today had an article on the reeling retail market. Things look bleak as major retailers like Levitz, Sharper Image and maybe Linens `n Things file for bankruptcy.

I'm not sure how this will play out. If you go by numbers, national chains aren't projected to close as many stores as they did in 2004 or 2001. And the number of store closings dropped in the following years.

Yet, this economy has a decidedly different feel to it. In fact, from another NYT article:

Indeed, on Friday, consumer confidence as measured by the University of Michigan plummeted to its lowest level since 1982. The drop was attributed mostly to higher fuel and food costs, but consumers’ views on their current and expected personal financial situations dropped to their lowest readings since November 1982 and April 1980, respectively.

Why do we care? Or, I should say, what the hell does this have to do with Newburyport?

Well, first we already lost Chico's. (Boo hoo to some folks I know.) Now I wonder how a sagging real estate market affects New England Development's plans on the water. Do they wait and see or build now in anticipation of a rebound?

Second, if the retail market is this soft I wonder what kind of summer our local stores might have. Might be a good idea to spend your pennies downtown if that's at all possible.

.