One week ago, when looking at the latest Fitch forecast of retailers most likely to file for bankruptcy next, we listed the hundreds of store closures already announced in 2017 between various bankrupt and still solvent retail chains.
Declining consumer demand for traditional retail venues and deteriorating financial results aside, we showed the simple reason for the persistent pressure on traditional "brick and mortar" stores to restructure with the following chart which showed that North America has a glut of retail outlets, as well as far too many shopping malls, something which is becoming apparent as sales per capita decline. On a per capita basis, the US has roughly 24 square feet of retail space per capita, more than twice the space of Australia and 5 times that of the UK.
But what about new store openings? After all, on a net basis the US retail industry has to still be growing. Here we have some good and bad news.
First the good news: according to a recent analysts by Bank of America's REIT team, in which the bank analyzes both store openings and closings for the same sample of 33 retailers that its have analyzed since 2007, it finds that the projected net new store count for 2017 is 1,041, which is lower than last year’s actual 1,109. While the net number of 1,041 openings this year is lower than the 10-year average of 1,386, "nevertheless the numbers are still positive" is how BofA spins the silver lining.
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Most people have no disposable cash and can only shop there.
ReplyDeleteEven people who can afford to shop wherever they want shop at $ General, Family $ and $ Tree. No one is beyond getting good prices on items.
ReplyDeleteI know people/couples that are very well off and still shop at the Dollar Tree. What moron wouldn't want to to pay less then more? They still have some name brand items there. I much rather visit there first before paying more for the same thing elsewhere.
ReplyDeleteI heard they are closing all the Family Dollar stores here in Salisbury because of the merger with Dollar General. Like Walmart, looks like they will have a monopoly on this area. The poor will be limited in their choices.
ReplyDeleteDollar Express bought Family Dollar. Closing select stores and leaving employees high and dry.
DeleteThe reason for the dollar store openings is of course common sense prices go up every year, the only way to save money on costly items like cleaning supplies, diapers, school supplies, deodorants, shampoos, soap and washing detergent. These items add up if you purchase them elsewhere. Save money for other things, some of the dollar stores even take coupons, so even bigger savings. SHOP SMART TRY IT YOU'LL LIKE IT.
ReplyDelete1016 you're such a snob its ridiculous. "The Poor" I'll have you know one of the busiest Dollar Stores I've ever shopped at was in Beverly Hills, California. 500 Series Mercedes, Lamborghinis, Ferraris, Rolls Royces in the parking lot better than the heep you drive. Those peeps live in bigger homes than you could ever imagine. Their guest houses are probably bigger than your stack of bricks. So please, get off your high horse, honey buns.
ReplyDeleteShopping at the Dollar stores are SMART any way you cut it regardless of your economic status. Only here in Salisbury do the so-called wealthy don't dare to go to these places because your nose is so far up in the air you're breathing in moon dust.
What's Dollar Express 11:40? Dollar Tree acquired Family Dollar. Subsequently Dollar General expressed an interest in merging but the idea was rejected by the Family Dollar board due to concerns about antitrust issues arising so didn't accept the Dollar General bid.
ReplyDeleteAs of noon, Dollar General stock is up $1 per share.
ReplyDelete11:50
ReplyDeleteI agree with you that the rich also shop at these stores, including Goodwill. I also shop there to buy Soap, dish washing liquid, cleaning supplies, and office supplies. I didn't mean to come off as sounding like a snob.
The fact is a lot of the poor go there to buy groceries. They have a frozen foods section there now. My mother is on a fixed income. I take her there to shop for these items and I do this as well. Helps to make my money stretch further. In this economy there is less disposable income and it is smart to go where you can get the best deal for what little money you have left after expenses.
What I am simply saying is, the poor depend on these stores and less competition can mean higher prices. I don't like monopolies. Comcast and Verizon is a good example of this. Less competition means they can basically charge what they want.
Doesn't it tell you something, when stores like the Dollar Tree and Dollar General are doing well, while the traditional chain mall stores are failing and are closing down. More prof the economy hasn't improved since the great recession started in 2008.
ReplyDelete8:19 Salisbury has plenty of no money people. If you go west of the Bay, you'll find people with educations, jobs, and plenty of money!
ReplyDelete327
ReplyDeleteAre you saying that Professors of Economics believe the economy hasn't improved since the 2008 collapse?
All of them, or just some of them?
I love the Dollar General in Pittsville. You don't know how many times it has come in handy and saved us from having to drive all the way to Salisbury. It is always busy.
ReplyDelete