Thursday, January 8, 2009

Stockton and Silicon Valley Surprises

Some interesting comments about Stockton mall retailers faring better than expected this holiday season, along with a few new store openings. Like everywhere else, Stockton is struggling and has its fair share of shopping center vacancies. However, the economy here is not as bad as conventional wisdom predicts for the world's foreclosure capital. We have been predicting it will be the fastest growing market in Northern California over the next 2 years (not that it takes much positive news to earn that distinction these days).

Sherwood Mall General Manager Gayle Speare said that despite a "very rugged economy, the stores we have actually have done very well." She was very surprised, she said, but most retailers there hit or exceeded their sales marks over the holidays.

Meanwhile, our last forecast predicted Silicon Valley would see the biggest change in fortunes in 2009. They dodged the first half of the recession (dominated by real estate and construction troubles), but the tech sector will be hammered by the steep, broad based, global downturn. Intel's disapointing results made headlines yesterday.
For the second time in two months, Santa Clara computer-chip giant Intel on Wednesday lowered its fourth-quarter revenue forecast, saying weakening global demand for semiconductors had cut unexpectedly into its sales.

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