San Francisco Consumer roundtable

Craig Johnson of Consumer Growth Partners and Laura Petrucci of the Winthrop Group talked re retailers and primarily in the apparel space. Laura focused on the move by consumers to the experience rather than eHmaterialistic buying patters. This should lead even affluent baby boomers who have been scared by recent economic changes to be better educated and more selective with unique product motivating the buyer rather than price. Better due dilligence means that pricing must be in line but unique product is the draw for the affluent and the aspirational buyer.
Some wholesalers she discucussed moving to multi strategy models. Craig and Laura talked on the over storing in retail but then mentioned that saturation has not been met in the Outlet Mall concepts. Today maybe 100 good outlet malls and maybe a capacity to double this in the next few years.
Laura and Craig had different views looking forward as Laura had more concerns of employment impact to the economy and Craig sighted savings rates dropped from a peak of 5 1/2% to a more normal 3 1/2% today and that this showed spending would stabilize.
Yet both cited aspirational and many high end buyers going to the discounters, who have gotten better at buying and catering to targeted markets and the educated clients using the outlet mall as their new malls of destination and some choice. Will talk more tomorow on some of the individual names they discussed.