Moody's Investors Service said on Thursday that children's retailer Gymboree Corp. would benefit the most from plummeting cotton prices and steady demand. When cotton prices peaked last year, Gymboree's profit margins took the hardest hit, but an ongoing decline coupled with a slow and steady economic recovery in the U.S. should benefit the company, with most gains coming in the second half of the year.
I know Walmart is a bad word to anyone servicing better tiers, but guess what, they’re the ones benefiting from the economy. Moreover, they just might maintain much of that market share post recovery.
Everyone keeps wondering if people will ever return to pre-recession level spending. While I think Americans have extremely short memories and will return to shopping, I don’t think it’ll be with the same abandon as before.
(And that’s a good thing—look where it got us.) Stores like Walmart seem to have the same theory.. .