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cashinmattress

The Slow Death Of Us Big Box Retail.

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I suppose it will be the same situation here in time.

http://theeconomiccollapseblog.com/archives/economic-recovery-13-of-the-biggest-retailers-in-america-are-closing-down-stores

#1 Sears lost 580 million dollars in the fourth quarter of 2015 alone, and they are scheduled to close at least 50 more “unprofitable stores” by the end of this year.

#2 It is being reported that Sports Authority will file for bankruptcy in March. Some news reports have indicated that around 200 stores may close, but at this point it is not known how many of their 450 stores will be able to stay open.

#3 For decades, Kohl’s has been growing aggressively, but now it plans to shutter 18 stores in 2016.

#4 Target has just finished closing 13 stores in the United States.

#5 Best Buy closed 30 stores last year, and it says that more store closings are likely in the months to come.

#6 Office Depot plans to close a total of 400 stores by the end of 2016.The next seven examples come from one of my previous articles…

#7 Wal-Mart is closing 269 stores, including 154 inside the United States.

#8 K-Mart is closing down more than two dozen stores over the next several months.

#9 J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.

#10 Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.

#11 The Gap is in the process of closing 175 stores in North America.#12 Aeropostale is in the process of closing 84 stores all across America.

#13 Finish Line has announced that 150 stores will be shutting down over the next few years.

E-commerce, credit, job losses, rising costs from China, society in general, all contributing to the death of what was great about America... it's over-abundance of excess, including big box shopping malls.

All those shops closing putting all those people out of work forever.

What a total mess.

The top item there Sears, I believe a few years ago their ratio on cash sales to credit card charges+interest repayment was like 1/8. Amazing.

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Soon retail rents should be as cheap as chips and then it would be time for internet retail to collapse. Say in 20 years time.

Of course the powers will do everything in their power to prevent rents etc falling.

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I'm amazed that there is still any 'high street' market left for anything other than clothes, food and tobacco. Even then, lots of supermarkets now deliver groceries and petrol station shops cover most of the essentials should you run out of bread/ milk/ sugar or whatever.

It seems to me that there would be a big market for opening up 'delivery centres' in/near centres of population where goods could be shipped to from any online retailer and picked up at the buyers convenience within a couple of days. Pair them with an attached pay at pump petrol station and vending machines holding essential groceries and you are on to a cheap to operate, easy to manage moneyspinner.

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I find it weird people buy things on the internet. I remember we used to buy things from catalogues, and it was very exciting, then I used to end up with weird purple coloured cordrouys that I would wear once and them hide in the back of the wardrobe. I know you can send back stuff these days, but I'm sure a lot of people must just be putting up with stuff that they would never have bought if they had actually seen it in real life.

I also wonder if the costs of returns are being hidden by the rapid expansion. I've mentioned several times, that some people were asking questions about Tesco 20 years ago, and obviously other factors have had their effect, but one of the issues was that the pace of expansion and accounting policies were disguising weak results. It took 20 years for the growth to come to a halt, and the weeckage to be visible. Could be the same with internet buying. I have heard that returns are something like 70% for women's clothes.

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The local Morrisons has shut, and the Coop bank. I don't think I had bought new furniture until a few years ago. And that was only a washing machine from the internet.

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Good for the planet though. All this over consumption is a terrible waste of resources. :)

I thought it was over production. Producers had for years run on the back of boomers and as they look to leave the system and retire there consumption needs change, reducing. The problem then would seem to be more production has not reduced to meet actual needs of society and all to obvious there will be job loss's, closures and deflation.

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There is one big difference between buying on line and in a shopping center- the former is a solitary activity while the latter is often more a social one. if high street retail does die the knock on effect would not be a simple transfer of that demand to the online retailers, I think there would be an overall decline in consumption generally.

The analogy would be the difference between a night out at the pub with your mates and an evening of solitary drinking at home- most people would probably drink more and spend more in a social setting than they would sitting on the sofa at home on their own.

So the decline of bricks and mortar shopping could mark a decline in the overall propensity to spend- especially on the more impulse driven purchases that benefit from the more social aspects of a day out at the shops.

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I thought it was over production. Producers had for years run on the back of boomers and as they look to leave the system and retire there consumption needs change, reducing. The problem then would seem to be more production has not reduced to meet actual needs of society and all to obvious there will be job loss's, closures and deflation.

Most boomers I know are packrats, me included. Might be to do with not having much when young, manufactured goods were crazy expensive compared to now.. We got richer as tat got cheaper so we just kept buying.

Youngsters now seem to accept renting as an ok way to live. Furnished accommodation means no furniture to buy and if they need to move for work or whatever, they like having minimal stuff to lug around.

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There is one big difference between buying on line and in a shopping center- the former is a solitary activity while the latter is often more a social one. if high street retail does die the knock on effect would not be a simple transfer of that demand to the online retailers, I think there would be an overall decline in consumption generally.

The analogy would be the difference between a night out at the pub with your mates and an evening of solitary drinking at home- most people would probably drink more and spend more in a social setting than they would sitting on the sofa at home on their own.

So the decline of bricks and mortar shopping could mark a decline in the overall propensity to spend- especially on the more impulse driven purchases that benefit from the more social aspects of a day out at the shops.

That's a really good point. Maybe more selective spending rather than a reduction though. If I buy less 'tat' I have more to spend on things I really do need, even if it is non-physical like lessons/classes.

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Ted Baker are opening a distribution centre in Derby creating 250 jobs (this is next to recently open facility for Heineken operated by Kuehne + Nagel) , on top of 500 jobs at Coalville being created by Amazon, There are supposed to up to 7000 jobs being created when the East Midlands Strategic Rail freight hub is built next to East Midlands Airport in the next few years.

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I find it weird people buy things on the internet. I remember we used to buy things from catalogues, and it was very exciting, then I used to end up with weird purple coloured cordrouys that I would wear once and them hide in the back of the wardrobe. I know you can send back stuff these days, but I'm sure a lot of people must just be putting up with stuff that they would never have bought if they had actually seen it in real life.

I think it depends on what you're buying, branded stuff, electronics, where you can rely on online reviews are often more conveniently bought online. I agree with you about clothes though I prefer to try them on before I buy. though returns are easily catered for without too much inconvenience.

Do you think that the closure of retail outlets simply reflects a shrinking of the bricks and mortar channel rather than a fall in total volume.

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I suppose it will be the same situation here in time.

In response to myself haha, seems like it is no longer being forecast from the boardroom but warned from the trenches.

http://www.shopping-centre.co.uk/news/fullstory.php/aid/8810/BRC_warns_of_mass_store_closures.html?

The British Retail Consortium is forcasting a surge in store closures as digital reshapes the industry

Retailers are likely to review their physical store portolios as more property leases come up for renewal and the cost of labour goes up, while the cost of technology goes down according to as new report from the BRC.

It suggests that store closures on UK high streets and town centres could happen while retailers still deliver improvements in the quality and variety of the offer to customers, continuing competitiveness in pricing and greater productivity.

The report is based on detailed research and modelling across the industry, involving the most senior executives in retail businesses, and it found that areas that are already economically fragile are likely to see the greatest impact of store closures. Smaller businesses are also likely to be disproportionately affected by the ongoing evolution of the industry, as they generally have fewer ways in which to respond to rising costs.

BRC chief executive, Helen Dickinson, said: “The key conclusions of today’s report are not surprising – there will be a further contraction in retail space and a reduction in the number of people employed in retail. Individual retailers will find their own paths to 2020 and beyond but from an industry perspective, we hope to see technology and competition resulting in better experiences for the customer and better jobs for those working in retail.”

Amazon once the ultimate punt without a business model has grown up, and become one of the four digital horsemen of the retail apocalypse.

Edited by cashinmattress

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