The New York Times is running an article entitled, "Retailing Chains Caught in a Wave of Bankruptcies." The article begins, "The consumer spending slump and tightening credit markets are unleashing a widening wave of bankruptcies in American retailing, prompting thousands of store closings that are expected to remake suburban malls and downtown shopping districts across the country." The article adds, "Because retailers rely on a broad network of suppliers, their bankruptcies are rippling across the economy. The cash-short chains are leaving behind tens of millions of dollars in unpaid bills to shipping companies, furniture manufacturers, mall owners and advertising agencies. Many are unlikely to be paid in full, spreading the economic pain."
Read the Article!!
Discussion Starters for Younger Children
What stores do your students like to shop in with thier parents? Why do they like to shop in these stores? Have they/their parents bought anything at these stores recently? If so, what?
Do your students think it is more important to shop at a grocery store or to shop at a toy store? Challenge them to explain why one might be more important than another.
How do your students think that a store gets the products that it sells? Have students ever seen trucks delivering stuff to a store?
Do students think that store owners want people to shop at their stores? Why/why not? What bad things might happen to a store if people stopped shopping there? What good things might happen to a store if many people started shopping there?
Discussion Starters for Older Students
Vocabulary terms to discuss: "Credit Markets"; Bankruptcy; Interim; and, Liquidation.
Challenge students to learn more about bankruptcies. What questions would they ask to learn more about bankruptcies? Why would they ask these questions?
Challenge students to write equations explaining the influence that a single bankruptcy could have on an entire economy. Why do these equations work? Challenge students to explain the point of this activity.
Ask students to imagine that they owned a store that was being negatively effected by the slow economy. What three things might they do to try and promote business? Why do they think that this would work?