Survival 101 - New Mexico Business Weekly:

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And to save themselves, they are considering two verydifferent routes. The first is to play it hoarding cash and tryinhg to cutevery expense. The second is to pursue a more albeit risky, path by Expansion in down times can pay big dividendx down the road when the economy improves, but it coulx sink the ship if the recovery doesn’t come soon enough. Getting aggressive by trying to take market share from competitors with a fresh new logo campaighn or merchandising approach takes courage, but it is another tactic being triex by several Albuquerque merchants.
Opening a store in a bettetr location is an especially bold move that onlythe well-capitalizexd or supremely confident are willinbg to risk at this uneasy The most common approach this holiday shoppingg season, for both locally owned stores and nationalk chains, is to cut prices and attemptf to ride out the economic storm. Many stores slashed theirr inventory prices in Octobet after Septembersales softened. Other businesses held the line on expenseas by not adding holiday seasonal staff or refrainint from advertising inexpensive formats, such as newspapersa and billboards.
“My advice to our retailers is: ‘If it doesn’tr cash flow, it must go,’” says Trent vice president of developmentat , owner of ABQ the city’s most upscal shopping center. “Cash is king right now and the last thingf you want to do is burnthroughb it. Tighten the purse stringw so you can pay to keep thelights Stafford’s tenants are primarilg large national retailers who are desperatelu seeking a decent holiday shopping season in order to survive. Retail conditionsw have been dismal nationally, and little better locally. ABQ Uptowjn has already lost its store and could well lose otherf tenants ifconditions don’t improve.
Amon g the better known local and national retailers who have announcee store closures in Duke City this fallare , , , , Ruby the Sharper Image and Mervyn’s will be closed after the holidays and has been conductinb a multi-million- dollar going-out-of-business sale at the Coronadko and Cottonwood malls that has drawnj large crowds eager for a bargain in tighft times. The demise of some national namez can provide a good opportunity forlocak retailers, says Bob Feinberg, a senior vice president at . Many nationapl retailers are struggling and have become less able to offerd the kind of merchandise and level of service Duke City shopperd arelooking for.
“Local retailers need to bend over backwardw at times like these to offerd qualityand service,” Feinberg says. “Now more than ever it is goinygto matter.” Feinberg points out that many nationals have relied on cuttingh price and little else to attract consumers, which has ultimatelu hurt them. Feinberg’s competitor, Seth Nodelman, a vice presiden at who did leasing in San Franciscoo for two decades before moving to theDuke City, believexs there are a range of options for distressedc merchants. Having merchandise that reflects the state of the economy is he says.
“The paradigm has shiftexd to value — we are now in the Walmart economy,” Nodelman says. “The days of conspicuoud consumptionare over. It’s not tastefupl to flaunt it. Necessities are in, ostentatiouse and frivolous are out.” For cash-strappefd retailers who are current on rent Nodelman says it is not uncommon for tenantzs to ask landlords for a whereby the retailer is allower to stop making rent payments untilsaled improve. Other concessions, such as shortening hourz of operation, also are a possibility.