“We had wanted to be in Manhattan for awhile, were in the right financial position and the mall had just been remolded,” said Pete Sadler, JC Penny district manager. Known for “being fashion and price conscious,” Manhattan is an unlikely location for the retailer, however the retail landscape of the Big Apple is changing. We reported earlier that retailers like Brooks Brothers are being replaced with low-cost, high-style retailers like Britain’s TopShop. Although JC Penny “is pulling out all stops in terms of displays, advertising and in-store variety to bolster it’s image from frumpy to more fabulous,” it’s still a solidly middle-market department store. What does this say about the long-term impact of the recession on shopper tastes and behavior?

In this month’s DDI magazine, Paco Underhill states definitively “that we are never bouncing back.” What do you think?

However, Apple is an anomaly. Most US retailers are just staying afloat while foreign retailers are benefiting from the weak dollar and low rents in key American tourist districts. Brooks Brothers, a staple in American fashion retail, recently vacated a 30,000 square-foot shop on Fifth Avenue. The prime location is being eyed by Japan’s Uniqlo, Britain’s Topshop and Spain’s Zara. Topshop and Uniqlo have already found New York homes in SoHo and Lower Broadway, respectively.  Is it time for American retailers to consider setting up shop in emerging markets, consolidating operations or joining forces with stronger global retailers?

Walmart recently entered the Indian market by partnering with Bharti Group, owner of India’s largest telecom company run by businessman Sunil Mittal.  Bharti Walmart, called Best Price, opened its first store in Amritsar with plans to open 15 additional locations over three years. So far it’s a totally new concept to Indians who are used to buying from small, independent merchants. This venture and others like it could provide the balance necessary to wait out the effects of the recession.

This recession has proven that the economy is truly global. Businesses cannot merely consider what’s happening in their home states but must stay aware of international opportunities. That said, should other US retailers follow the trend of crossing seas?