We can't have enough Big Macs -- 2 for $2.50.

The retail trade journals have been making the case for the "next step down" in consumer behavior ovber Q4 and into 2009. Basically, consumers are still eating out, but at the next level down in price. Those that once went to O'Charlies, Fridays, Applebees, and all the other "fern bars" are now skipping the bar and heading to the land of Big Mac and Supersized meals. The package liquor and beer biz is holding strong as people drink at home more often.

The same is holding true with major retailers, people are not stepping down a level or two by skipping the department stores -- especially in malls -- and heading to Wal Mart. Wal Mart has responded by selling more branded product and using their best in the world logistics system to sell better stuff at lower prices. Wal Mart really can't lose as there are few step downs from their pricing. I was recently in a meeting with a senior buyer and they are continuing to expand. They have a new concept store to be out in 2009....and it makes sense. Wal Mart knows how to keep things lean and squeeze profit where competitors simply cannot. They are not a bunch of ArrrrKansas hicks.

One day, just one day, it would be great to see powered by e.Digital on a shelf at a Wal Mart. The volume they can do is insane. This I KNOW.

John