Who is right?

According to reports, the private equity firm that owns U.S. retailer Lord & Taylor is in talks to snap up Hudson’s Bay. At the same time, Bath & Body Works has announced plans to open six Canadian stores this fall. Which basically means two large American retailers are planning to set up shop here at a time when Canadian consumers have lost all confidence in their ability to keep on shopping. Either executives at the two retailers are seriously misjudging the resilience of Canada’s economy, or Canadian consumers are overly pessimistic. Which is it?