6,000 retail stores closing

Old article from zerohedge I didn't see a thread on. Whatever no big deal everything is fine.

Unless your just getting out of college or looking for something to get you by.

If the U.S. economy really is improving, then why are big U.S. retailers permanently shutting down thousands of stores? The “retail apocalypse” that I have written about so frequently appears to be accelerating. As you will see below, major U.S. retailers have announced that they are closing more than 6,000 locations, but economic conditions in this country are still fairly stable. So if this is happening already, what are things going to look like once the next recession strikes?

theeconomiccollapseblog.com...

We all know the economy is fine. These weasels, all 150 million or more of them just aren't carrying their weight.

Start buying houses and new cars and furniture millenials, your conservative ways are literally crushing the economy. So what if no one will pay you more than 13 an hour figure it out. Start a factory or something and manufacture some products.

Companies closing brick and mortar locations isn't really what I would use as a barometer for economic stability.

Nearly 1/3 of the "6,000" stores closing is from radio shack. So one defunct, losing money in every possible way, company accounts for a large chunk of that number.

Online sales continue to trend upward in each quarter from year to year. If online sales are going up and brick and mortar sales are going down, it doesn't make much business sense to hold on to brick and mortar locations just so people can have a job. Businesses are, by and large, out to make money. Not provide welfare. Not sure how they're supposed to keep paying people to stand around in a store that isn't making enough money to keep its lights on. Multiply that across 300 locations that are all losing money year in and year out and eventually the entire company shuts down, not just some of the store locations. But hey, those people got a few extra pay checks so I guess it's worth it?

a reply to: onequestion

Lots of people are buying online now which is changing the dynamics of retail outlets. Many are cutting there losses early in preparation to new lightning shipping methods.

Malls will soon look more and more like glorified flea markets and a strip malls will be more occupied by service type locations. I hope it's just a sign of the times but in reality malls are somewhat passe now anyway.

ZeroHedge Rules, btw!

a reply to: onequestion

Its a pretty damning article,i have little doubt we are in for a downturn in the economy and it will likely be bad,especially with all these displaced people that are desperately trying to find a safer haven.....

I did notice however that he is selling a book for this purpose so he may have laid on the fear a little thick....

That is why it is so vital to prepare yourself financially, mentally, emotionally, physically and spiritually for the great storm that is coming ahead of time. Over the past couple of years, I have been working on a new book entitled “Get Prepared Now” which talks about how to make these preparations. On Wednesday, it was finally released to the public. I hope that you will check it out.

In a word: Amazon.com

I personally believe that some of these retailer closings are because more and more people are starting to purchase things online compared to before.

Oh by the way, I don't see anywhere in the article that 6,000 stores are closing, but rather than Procter & Gamble is cutting 6,000 jobs.

Amazon and ebay. I think we'll see store fronts that don't even bother to warehouse items within a decade. People will still want to touch and feel products, but drones or the like will deliver it perhaps by the time they get back home or soon after. Before such time, only the strongest remain outside of the online domain.

One place to have a look at once in a while ....

Daily Job Cuts

Could be that many people don't shop in stores anymore.
Even, I, old Grandma do a great deal of my shopping online now.
No store needed.
Saves money too, when I go to a store I generally walk out with more than the item I intended to purchase.
When I buy online, I only buy the item I wanted and save money by not going to a actual store.

My "kids" do most of their buying online.
They and their spouses work full time.
Buying online saves time they can spend with their families.

So you should add that we all need to get out of the house more and shop in a store.
With germ ridden carts that I have to wipe down, yuck.
With non-existent clerks to help me locate items.
With psychological tricks to entice me to buy stuff I don't need.
Add to that, I have to make myself look good enough so people don't gag at the sight of me.
Then go from store to store, spending hours looking for something I could find at home online in a few minutes.

Yeah, right.

That's why stores are closing. Has nothing to do with the economy.

a reply to: AnteBellum

On line sales are not going to employ the people or the many support services that brick and mortar stores do. The closed business use a lot of the under-15-bucks-an-hour folks. That is what is driving this cost savings on personnel. Perhaps it is a "better" was to profits for the companies (as Radio Shack is doing) but fewer people working. You really can't have it both ways for long.

originally posted by: xuenchen
One place to have a look at once in a while ....

Daily Job Cuts

That's a depressing website.

a reply to: grandmakdw

Yeah all of the retail stores in America vlpsing won't effect out 70% services based econom. At all.

For sure.

Ugh I need a new phone.

a reply to: Aliensun

With the exodus of retail chains and increase of service locations (to fill the space) there still will be a surplus of empty retail space available.
This is actually happening now, next time you go to the mall notice the size increase of some stores but also the greater amount of empty locations.
In turn this decreases the average rent by strip owners hoping to generate new clients, which leaves openings for entrepreneurship to those that can now afford it. In other words the 'mom and pop' stores Wal-Mart and Home Depot closed years ago will make a return.

At least I hope this is the projected future. As an architect I'd much rather renovate for new retail, then see these places converted into new slums or luxury housing.

originally posted by: Shamrock6
Companies closing brick and mortar locations isn't really what I would use as a barometer for economic stability.

Nearly 1/3 of the "6,000" stores closing is from radio shack. So one defunct, losing money in every possible way, company accounts for a large chunk of that number.

Online sales continue to trend upward in each quarter from year to year. If online sales are going up and brick and mortar sales are going down, it doesn't make much business sense to hold on to brick and mortar locations just so people can have a job. Businesses are, by and large, out to make money. Not provide welfare. Not sure how they're supposed to keep paying people to stand around in a store that isn't making enough money to keep its lights on. Multiply that across 300 locations that are all losing money year in and year out and eventually the entire company shuts down, not just some of the store locations. But hey, those people got a few extra pay checks so I guess it's worth it?

Also some of the stores with closing like Dollar Tree/Familiy Dollar also opened another 700 stores, simply moving stores with new to new areas. Or Walgreen's closing 200 stores by 2017 but opening 120 this year alone. McDonalds closing 700 stores but opening 1000 new ones.

Then you have places opening driving out the others Dicks, Hobby Lobby, Mens Warehouse all opening at least 100 stores, Oriely Auto Parts and Chipolte with over 200, Tim Hortons over 300, Dunkin Donuts with over 400, Forever 21 with almost 500, and Dollar General with 700 openings. Walmart of course with another 240.

Sure you have the oddity of Radio Shack a company that has been on life support for decades. For most other closing you either have new openings from the same company as well or competitors opening new locations.

Our economy will look foreign to us in about 5 years..

I am not sure how this will effect our GDP.

I buy almost everything online..

I like it that way to be honest, the biggest problem with these retailers is they cannot compete with the prices I find online. For example. I bought a top quality blu tooth headset online for half of what bestbuy and verizon shops locally were trying to get me to buy locally.

Now more and more people are learning this.. So yea in 5 years hell we may no longer have retail stores... They are going to have to be able to compete..

I give no credit to my bargain finding abilities either..

originally posted by: Shamrock6
Nearly 1/3 of the "6,000" stores closing is from radio shack.

With the outrageous prices that Radio Shack has had, it was not a surprise when they made their announcement a while ago. Just surprised they're still holding on...

originally posted by: grandmakdw
Could be that many people don't shop in stores anymore.
Even, I, old Grandma do a great deal of my shopping online now.
No store needed.

I try to buy things locally, but they make it such an asspain that I often end up buying things online.

- cool story bro -

The can opener in the apartment we have in Bakersfield was a POS. Went to buy one, and believe it or not, I ended up tooling all over Bakersfield without finding one. Two Wallies, the Target and the Beast Buy, and all they had was the same bottom feeder $10 can opener I already had. "But we can order it for you!"

Why? Don't bother. 30 seconds on Amazon and voila! I've got the same one I have at home, for about half what you would have charged.

The Amazon Age has greatly lowered my tolerance for businesses not having stock, for having to drive too far, or for "hiding" the thing I'm looking for. Also, "bait and switch" doesn't work any more. "Oh, don't have the one I'm looking for? Ok. I'll order one!"

But I do still try to patronize the local brick and mortars.

a reply to: Shamrock6

Businesses are, by and large, out to make money. Not provide welfare.

Sadly that is unsustainable in the long run. As every company micro manages their business we lose more and more job. Progress in the form of more for less will only last so long before the divide between the haves and have not grows.
We are much closer than many realize. The amount of things we can make and sell is limited.

a reply to: Bedlam

I also try to, I still buy things locally when I am not in the mood to wait, but online is crushing their sales. Also most people that buy things online do not pay sales tax. Which I assure everyone will be changing soon...

originally posted by: onequestion

Start buying houses and new cars and furniture millenials, your conservative ways are literally crushing the economy. So what if no one will pay you more than 13 an hour figure it out. Start a factory or something and manufacture some products.

I'm not sure your point... Do you want them to buy buy buy or live within their means...hehe