Retail Apocalypse: Why Are Major Retail Chains All Over America Collapsing?

[old steel]

If the economy is improving, then why are many of the largest retail chains in America closing hundreds of stores? When I was growing up, Sears, J.C. Penney, Best Buy and RadioShack were all considered to be unstoppable retail powerhouses. But now it is being projected that all of them will close hundreds of stores before the end of 2013. Even Wal-Mart is running into problems. A recent internal Wal-Mart memo that was leaked to Bloomberg (http://www.bloomberg.com/news/2013-02-15/wal-mart-executives-sweat-slow-february-start-in-e-mails.html) described February sales as a “total disaster”. So why is this happening? Why are major retail chains all over America collapsing? Is the “retail apocalypse” upon us? Well, the truth is that this is just another sign that the U.S. economy is falling apart right in front of our eyes. Incomes are declining, taxes are going up, government dependence is at an all-time high, and according to the Bureau of Labor Statistics the percentage of the U.S. labor force that is employed has been steadily falling (http://theeconomiccollapseblog.com/archives/shocking-numbers-that-show-the-media-is-lying-to-you-about-unemployment-in-america) since 2006. The top 10% of all income earners in the U.S. are still doing very well (http://theeconomiccollapseblog.com/archives/the-u-s-has-an-even-larger-gap-between-the-rich-and-the-poor-than-downton-abbey-does), but most U.S. consumers are either flat broke or are drowning in debt. The large disposable incomes that the big retail chains have depended upon in the past simply are not there anymore. So retail chains all over the United States are now closing up unprofitable stores. This is especially true in low income areas.

When you step back and take a look at the bigger picture, the rapid decline of some of our largest retail chains really is stunning.
It is happening already in some areas, but soon half empty malls and boarded up storefronts will litter the landscapes of cities all over America.



Read more at http://investmentwatchblog.com/retail-apocalypse-why-are-major-retail-chains-all-over-america-collapsing-sears-j-c-penney-best-buy-and-radioshack-are-all-going-to-close-hundreds-of-stores-before-the-end-of-2013/#1r3AcvHl9xSWrEBO.99

[vacuum]

I don't know about anyone else, but things are cheaper online, more easily reviewed and researched, and perhaps best of all, I don't have to go outside....

[Glass]

It's happening here as well. Malls not quite the full compliment of outlets. I've noticed shortages in the supermarket for the last 2 months now. Somethings have been out of stock a month or more. I think the companies have gone broke.

[gunDriller]

but Amazon doesn't have a parking lot to camp out in !

i notice those 'camper cities' come & go in the Walmart parking lot.

since it becomes expensive to drive the camper to another store, Walmart has a financial reason to let the campers stay - they spend all their money on 'Great Value' crap.

i notice it other places too - people camping out in the mall parking lots.

[ImaCannin]

I don't know about anyone else, but things are cheaper online, more easily reviewed and researched, and perhaps best of all, I don't have to go outside....

Internet sales suck too! My online business is about to close its doors, and I have very little over head!!!

[chad]

i order it from my computer. it's cheaper, and the ups fairy delivers it in 1 or 2 days. this allows me to stay at the compound 24/7 and shun the idiots even more.

[Horn]

But they're all still waiting to see what magic rabbit Ben will pull out of his hat next.

Oh that's right, he has a replacement act coming soon.

[Horn]

i order it from my computer. it's cheaper, and the ups fairy delivers it in 1 or 2 days. this allows me to stay at the compound 24/7 and shun the idiots even more.

You gotta get out there & burn some unnecessary fossil fuel, its what your civilization was built upon.

[EE_]

You guys are probably looking in the wrong places. People are feeling wealthier today, compared to a few years ago.
The economy is in recovery, the stock marked has recovered, homes prices have rebounded and unemployment numbers are improved. The reason the discount retailers are doing poorly, people are shopping at the high end stores Neiman, Sachs, Tiffany's and Crate & Barrel.

[Twisted Titan]

Why are retailers acting surprised?

This is what happens when you outsource everything that is not nailed down.

I remember when Woolworth(remember them?) over half of the merchandise it sold was from manufactures right in town

Then everythjng started going down south, then it went to mexico the final stop on the train was china

All in the name of saving a dollar.


Well guess what? now customers are saving a dollar all together by not spending it in your store.

Now try and reverse the river that you set in motion.

I will sit back in delight and watch you drown.

[mamboni]

For four decades, the American consumer's wealth has been ground down between the millstones of dollar inflation, wage deflation secondary to labor arbitrage, and bracket-creep taxation. Americans today have little to no net worth and cannot support any increase in rotating credit debt: the shoppers are tapped out. The days of shop till you drop are over.

[EE_]

Does this retail industry look like people are hurting?

http://media.cmgdigital.com/shared/lt/lt_cache/thumbnail/960/img/photos/2013/01/26/4a/f8/jwj-Gun-Show-070.jpg
http://cbsphilly.files.wordpress.com/2012/12/photo-12.jpg
https://lh6.googleusercontent.com/-xcKm-swot7c/UNZK10t4olI/AAAAAAAAcIA/Ukj8sWORl-w/s800/gunshow.JPG

[Carl]

Does this retail industry look like people are hurting?

http://media.cmgdigital.com/shared/lt/lt_cache/thumbnail/960/img/photos/2013/01/26/4a/f8/jwj-Gun-Show-070.jpg
http://cbsphilly.files.wordpress.com/2012/12/photo-12.jpg
https://lh6.googleusercontent.com/-xcKm-swot7c/UNZK10t4olI/AAAAAAAAcIA/Ukj8sWORl-w/s800/gunshow.JPG

Statistically speaking; nearly half of those people are on some type of government assistance....

[Twisted Titan]

At least they are spending it on something that has lasting value and was made domestically.

[Cebu_4_2]

Statistically speaking; nearly half of those people are on some type of government assistance....

Absolutely but they still have their priorities in order.

[Son-of-Liberty]

A recent internal Wal-Mart memo that was leaked to Bloomberg described February sales as a “total disaster”. So why is this happening?

This is why....



https://lh6.googleusercontent.com/-xcKm-swot7c/UNZK10t4olI/AAAAAAAAcIA/Ukj8sWORl-w/s800/gunshow.JPG

I think a lot of money is being diverted to guns and ammo. Spending $2000 unplanned on an AR and another $1000 on ammo doesn't leave much left for Wal-mart trinkets.

If even 10% of households are stocking up that is a big hit to retail sales.

[Libertytree]

http://www.theburningplatform.com/?p=49265

First it was McDonalds and now it is Wal-Mart. It doesn’t matter whether you love them or hate them, they are the canary in the coal mine. Wal-Mart has revenues larger than the GDP of most countries. They are the retailer of the 90%, just as McDonalds is the restaurant of the 90%. The average person is losing ground rapidly. The payroll tax increase took a chunk out of their monthly disposable income. Filling up their gas tank costs 10% more than it did two months ago. Food prices go up every day through the reduction in quantity in the packages. They think we’re stupid.

The outrage is over an executive actually telling the truth. I’m sure their are emails among the Wall Street banks about their insolvency that would open a few eyes. The powers that be in this country continue to pillage and loot through their control of the financial system, while the little guy sinks deeper and deeper into debt and despair. There will be hell to pay when the shit hits the fan. Meanwhile, just watch the MSM mouthpieces tell you about the great economic recovery as reflected in the all-time stock market highs.

Wal-Mart Executives Sweat Slow February Start in E-Mails (http://www.bloomberg.com/news/2013-02-15/wal-mart-executives-sweat-slow-february-start-in-e-mails.html)

Wal-Mart Stores Inc. had the worst sales start to a month in seven years as payroll-tax increases hit shoppers already battling a slow economy, according to internal e-mails obtained by Bloomberg News.

“In case you haven’t seen a sales report these days, February MTD sales are a total disaster,” Jerry Murray, Wal- Mart’s vice president of finance and logistics, said in a Feb. 12 e-mail to other executives, referring to month-to-date sales. “The worst start to a month I have seen in my ~7 years with the company.”
[...]
“Have you ever had one of those weeks where your best- prepared plans weren’t good enough to accomplish everything you set out to do?” Geiger asked in a Feb. 1 e-mail to executives. “Well, we just had one of those weeks here at Walmart U.S. Where are all the customers? And where’s their money?”
[...]
Payroll Tax

When a payroll-tax break expired Dec. 31, Americans began paying 2 percentage points more in Social Security taxes on their first $113,700 in wages. For a person making $40,000 a year, that is about $15 a week.

The extra tax bite is about equal to a year of car insurance for a family making $30,000 or a basket of groceries per month for a family making $50,000, according to Wal-Mart’s analysis.

Other retailers who court low-income Americans also are bracing for the rising taxes.

Higher payroll taxes “go against our customers’ wallet,” Family Dollar Chief Executive Officer Howard Levine said on a Jan. 3 conference call. “Clearly, they do not have as much for discretionary purchases than they did.”

[Carl]

Well, the clearly illustrates the fallacy of Capitalism, a.k.a. Corporate Mercantilism.

Keep preping for the Free Enterprise system that will follow.

[gunDriller]

and those cashier jobs are some of the last jobs available for Americans that have lost their jobs the last 6 years.

[Glass]

I think it's interesting the payroll tax is directly apportioned to workers wages. These companies pay no or nearly no taxes. This is the reason their customers have no money. Because the company is not paying the necessary taxes it has to come from some where. Maybe the government can give the companies some more welfare.

[Ponce]

Just got back from the big city....wally's, they now the self check out lanes...very simple to use and to pay all that you do is to place you money in the slots (paper or coins...or only paper) and the same will give you your change back and your receipt.....there was 8 of those center which means seven less employees,
they still need one to keep an eye on you.

First post of the day..............good evening to one and all.
v

[chad]

Just got back from the big city....wally's, they now the self check out lanes...very simple to use and to pay all that you do is to place you money in the slots (paper or coins...or only paper) and the same will give you your change back and your receipt.....there was 8 of those center which means seven less employees,
they still need one to keep an eye on you.

First post of the day..............good evening to one and all.
v

fuck the walmart self checkout. they don't pay me to be a checker, so I'm not doing it.

[Dogman]

Evolution applied to business.

In a way as malls killed many down towns stores and mom and pop businesses. Leaving behind many a gutted downtown and closed up buildings.

The internet is killing the brick and mortar retail chains and stores.

People may go to the store to get a look and feel and then go home and order the item, at a lower price than bought locally including shipping!

Unless the buyer wants what ever it is in hand at that instant!


The economy plays a roll also, but the trend of internet buying increasing vs brick and mortar stores dying will continue despite the economy being good or bad.

[FreeEnergy]

can somebody tell me why everyone thinks internet is making a killing while poor brick and mortar suffers?

I already had a conversation about this with someone, didn't I... Walmarts and Sears and such - they should be kings of the internet, and they are pushing Google legally and otherwise to give them most traffic. Since may 2012, lots of small mom and pop internet stores died quiet death, thanks to Google so called "Pengiun and Panda updates". Traffic is now being sent to big brands mostly, if you are mom and pop online prepare to die slow suffocating death or pay giants like Google for every click (and we are talking about here easily $1 /click and more in some niches).

Second hit will be internet sales tax that is coming to your favorite mom and pop e-retailer . That'll be an instant 10% price increase, someone has to pay for it and it will be YOU.

Now, about poor brick and mortars. Let's consider Wal-Mart or Home Depot for a minute. These companies are uniquely positioned to be top sites online, not your mom and pops. Their stores are warehouses, with shipping, receiving, packaging and inventory software already running, all they need is a good website - the rest is falling naturally into place. IF THEY WEREN'T TOO GREEDY OR LAZY, if they didn't have friends instead of qualified people managing, if they had been hiring top talent in ecommerce, they'd be eating everyone's lunch online already ,instead it took them 10+ years to figure it out.

Internet (small e-retail) has been one of the only few growth industries in USA, quietly killed in may 2012 by Google. Welcome to the new corpo-internet-wall-garden, grab your facebook and twitter, buy at Walmart, Sears and Amazon. That great small site you've been visiting in the past? Forgettaboutit, can't find it anymore.

[chad]

can somebody tell me why everyone thinks internet is making a killing while poor brick and mortar suffers?

I already had a conversation about this with someone, didn't I... Walmarts and Sears and such - they should be kings of the internet, and they are pushing Google legally and otherwise to give them most traffic. Since may 2012, lots of small mom and pop internet stores died quiet death, thanks to Google so called "Pengiun and Panda updates". Traffic is now being sent to big brands mostly, if you are mom and pop online prepare to die slow suffocating death or pay giants like Google for every click (and we are talking about here easily $1 /click and more in some niches).

Second hit will be internet sales tax that is coming to your favorite mom and pop e-retailer . That'll be an instant 10% price increase, someone has to pay for it and it will be YOU.

Now, about poor brick and mortars. Let's consider Wal-Mart or Home Depot for a minute. These companies are uniquely positioned to be top sites online, not your mom and pops. Their stores are warehouses, with shipping, receiving, packaging and inventory software already running, all they need is a good website - the rest is falling naturally into place. IF THEY WEREN'T TOO GREEDY OR LAZY, if they didn't have friends instead of qualified people managing, if they had been hiring top talent in ecommerce, they'd be eating everyone's lunch online already ,instead it took them 10+ years to figure it out.

Internet (small e-retail) has been one of the only few growth industries in USA, quietly killed in may 2012 by Google. Welcome to the new corpo-internet-wall-garden, grab your facebook and twitter, buy at Walmart, Sears and Amazon. That great small site you've been visiting in the past? Forgettaboutit, can't find it anymore.

i found it 7 minutes ago.

[FreeEnergy]

:) bookmarked?

[Carl]

Evolution applied to business.

In a way as malls killed many down towns stores and mom and pop businesses. Leaving behind many a gutted downtown and closed up buildings.

The internet is killing the brick and mortar retail chains and stores.

People may go to the store to get a look and feel and then go home and order the item, at a lower price than bought locally including shipping!

Unless the buyer wants what ever it is in hand at that instant!


The economy plays a roll also, but the trend of internet buying increasing vs brick and mortar stores dying will continue despite the economy being good or bad. Well if that's true then I guess it's just a matter of time before EBT cards will be accepted because no one outside of e-comerce will have a job that will afford them the ability to buy anything.

[vacuum]

I think what killed small internet businesses is that they can't compete on free shipping.

[Horn]

I think what killed small internet businesses is that they can't compete on free shipping.

I was purchasing from that Newegg guy when he had around 1500 customers,

amazing how timing worked there, must've had some pre-designed inroads (family) on the shipping side?