In Friday’s post, I mentioned consumers’ migration to lower-priced stores.
This continual consumer migration to lower-priced sources can be seen in a variety of statistics. One statistic that I find particularly interesting is contained in a Forbes story of September 3, 2010 titled “The Next Web Phenom.” At the end of the story it states “Groupon is on pace to pull in $1 billion in sales faster than any company in history. This list excludes investment holding companies (which tend to be preassembled before formally launching) and those built mainly through mergers or acquisitions.”
In the accompanying graphic, it shows how long it took the other fastest companies to grow to $1 Billion in sales. Interestingly, of the eight fastest listed since 1995, every one – with the exceptions of Yahoo and Google – have a business model focused on offering (highly) discounted goods or services to consumers.
A Special Note concerning our economic situation is found here
SPX at 1197.15 as this post is written