This may not seem like such a big deal especially if you don’t often shop, but it’s a red flag for the overall economy. Either customers/consumers now have less money and aren’t willing to borrow (use credit cards) to spend at stores anymore, or they are already maxed out and cannot spend. Another issue could be the overbearing regulations and burdensome theft (taxation) levied on business. It could be a combination of all of those as well, making the cost of keeping a brick and mortar store open no longer worth it.
But reports and the media blame the growth of online sales, rising interest rates, and declining sales. Bankruptcies also are continuing at a rapid pace “with the number of filings in the first six weeks of 2019 already at one-third of last year’s total,” the report states. That means companies have taken on more debt than they can handle, and much like individuals, when that happens, it is likely the beginning of some very rough times ahead. And debt is a major concern right now for most economists. Consumer debt, student loan debt, auto debt, and the national debt has all reached historic records – and that isn’t a positive sign for the economy.
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7 comments:
the economy isn't so great. wages are stagnant and jobs are non existent. there is very little money left at the end of the month to spend on crap.
online shopping is a joke. a lot of what I used to buy online (groceries) from walmart isn't available any more either. selections have dwindled
gas prices have jacked up 10 cents overnight.
home heating oil is nearing $3 a gallon again.
Drug prices also went up.
There is no getting ahead.
I believe it is on-line shopping. Amazon ring a bell.
Blah blah blah. Retail changes like weather. Always has. These research people like to over think everything.
I think some of these retail stores have simply run their course. Who would shop at CR when they can go to Marshall’s. I wonder how relevant CRs designs/styles are these days, too and they may have difficulty finding a buyer because of mall locations - something that brick and mortar shoppers are choosing less frequently. Gymboree is the outlier...withe great quality, wonderful employees, and styles that mom’s and kids really like. Not sure if there was a private equity influence there like Rous R Us or not. Gymboree is having a fantastic closing sale now, so if you’ve loved that store stop in, say something thoughtful to the employees who have served you faithfully for years, and maybe find a great (but sad) bargain
Kiosks at McDonalds. Enough said!
The conclusion is erroneous. The measure of the economy is consumer spending. The reality is that more $'s are spent online. Shoppers prefer the convenience. The result will be the continuing closure of brick and mortar shops. Its not necessarily a bad thing. Just like the change from horses to cars. A more efficient means to the end .
I have never heard of these stores mentioned. But there is several reasons why. INTERNET.
BAD NEIGHBORHOOD
PRODUCT
PRICE
Why don't they look at places like Boscovs?? JC PENNY? TRACTOR SUPPLY? WALMART? Stores who have a product's people want. For a price they can afford. In good areas that our safe for all. Has Internet access to shop and purchase.
Gotta love all the NEGATIVE NANCY out there. The sky is falling. AGAIN. LMAO
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