The retail bubble gets ready to burst

I base much of my prognostication on the future of retail on little more than my hometown of Rutland, Vermont. There, jobs have fled the state, while retail space expanded like an aggressive fungus. The model is untenable. Bankruptcy seems the likely result.

Today, 24/7 Wall Street throws its hat in the ring for a retail deathwatch, going as far as to name ten retailers who may not see 2009. The list includes Bon-Ton, Pier 1, Dillard’s, Eddie Bauer, Williams-Sonoma and more.

If this is the end of a business model, what follows for manufacturers, distributors, remaining retailers, city planners, and consumers? A giant strategic question for 2009…