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Thread: The retail apocalypse has officially descended on America

  1. #241
    RATE OF STORE CLOSURES ACCELERATES AFTER ALREADY HITTING RECORD HIGHS

    According to a report by Business Insider, more than 6,100 stores have been slated for closure so far in 2019, already exceeding last year’s total number of closures. …

    Not only does there appear to be no end in sight for this epidemic accurately dubbed the “retail apocalypse,” store closures are expected to pick up the pace as we inch toward 2020. Retailers are expected to close roughly 9,000 stores this year, followed by another 12,000 stores in 2020, according to estimates from Cushman & Wakefield.

    Record-high store closures, bankruptcies, and liquidations have occurred due to these establishments’ inability to manage their debt. ….
    "Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
    "War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.



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  3. #242

    Fry's Electronics: Will They Be Gone Soon? | Retail Archaeology


  4. #243
    I see Macy's has a big list . Looks like the only one in Indiana is Muncie . In a mall in a college town .

  5. #244
    The retail apocalypse is because of online stores,shops. If retail shops dont change bad things might happen to them. In canada a computer/desktop outlet shop is still standing and because they have changed alot on their front.

  6. #245
    Quote Originally Posted by AngryCanadian View Post
    The retail apocalypse is because of online stores,shops. If retail shops dont change bad things might happen to them. In canada a computer/desktop outlet shop is still standing and because they have changed alot on their front.
    So the news media says. The reality is online only makes up a small part of that. You cannot feel or try on clothes over the internet.

    This is a government created problem of rising property taxes. Growing government, salaries and pensions, send property taxes through the roof. This is either passed on directly to the retailer or through their lease. If you massively raise prices no one is going to buy but if you don't you are below water. Sp you just close shop. It is not just the higher cost per square footage it is the property taxes in region make it unaffordable for low income wage earners so the retailers must pay them more. Higher salaries again you have to raise prices so no one is going to buy.

    Then you have lack of buying power. People holding on to things longer and not buying since salaries have not kept up with the rate of property taxes and inflation. (not to forget even for renters, higher property taxes mean higher rents, therefore less buying power)

    Of course the news media will not report any of this. They take the lazy way out an just blame online retail or Amazon. Investigative journalism costs money. Cheaper to blame online and since most are Progressive (Communist) they will not say one word about rising property taxes. They love taxes. If it was up to the news media people would not own property and these malls - retail outlets would be provided by government.

  7. #246
    Store closures may make the headlines, but they do not include new businesses which open. Retail vacancies are actually at record lows. One thing which online stores are having a problem with is a very high rate of returns compared to brick and mortar stores- instead of trying before buying, people buy, then try, and return the items they don't want. Some returns are no longer considered "new" and must either be sold at a reduced price or somehow disposed of. That adds to the cost of doing business. Brick and mortar returns are 5- 10% of sales while online it can be 40% of sales.




    https://www.cnbc.com/2019/01/10/grow...landfills.html

    That sweater you don’t like is a trillion-dollar problem for retailers.

    As online sales boom, there’s an inevitable side effect: More merchandise is getting returned, boosting costs and complexity for retailers.

    The shift can be staggering.

    Shoppers return 5 to 10 percent of what they purchase in store but 15 to 40 percent of what they buy online,” David Sobie, co-founder and CEO of Happy Returns told CNBC.

    Not being able to see an item in person accounts for part of the difference, but consumers also shop differently online than in-store, Sobie said. They may order multiple sizes or colors to try on at home, and then ship or take back what they don’t want, with shipping paid for by the retailer, both ways in some cases.

    With costs mounting, understanding why shoppers return items and dealing with the logistics is a key issue that retailers are only beginning to tackle. A number of new businesses are sprouting up to try and wrangle the problem for retailers. These companies say higher rates of online shopping and more lax return policies are factors contributing to the rise of returns. However, there are more options for what to do with the returns, which can help to keep tons of unwanted items out of landfills and save retailers’ profit margins.

    Average return rates vary by category, but clothing and shoes bought online typically have the highest rates with 30 to 40 percent returned.

    Eric Moriarty, vice president of B-Stock Solutions, a liquidation marketplace said as e-commerce becomes a bigger percentage of retail sales, more returns will be coming back.

    “In 2018, it will be somewhere in the area of $400 billion worth of inventory ... with $90 [billion] to $95 billion returned post-holiday,” he said.

    In the next several years, as e-commerce grows globally, “the amount of returns is going to be over a trillion dollars a year,” Tobin Moore, CEO and co-founder of reverse logistics technology company Optoro, said.

    More lax return policies
    Another factor adding to rising returns is more relaxed return policies. As retailers fight for market share in an increasingly competitive industry, return policies are allowing longer windows to bring back items. Also, retailers are often accepting online returns in stores, even if the items were never sold at the store.

    According to a Happy Returns survey, nearly three-quarters of Americans say returns are their least favorite part of shopping online, so an easy return system is crucial for retaining shoppers.

    More items are returned during and after the holiday season than any other time of year. UPS estimates 1 million returns were made daily during December leading up to Christmas, largely from consumers that shopped early to take advantage of promotions and faster shipping options.

    But once the returned goods are back in the hands of a retailer, less than half are resold at full-price, according to Gartner Research. That translates to retailers losing out on 10 percent of sales during the holiday season, a trend that has not improved over the last couple years, and is expected to get worse.

    While returns are a big problem for retail, only about 30 percent of the country’s largest retailers quantify its full cost and only 23 percent use some kind of technology or software to better manage it, according to Optoro.

    In aggregate, “retailers are losing billions and billions of dollars on the way returns are managed,” Moore said. “A lot of retailers can add 5 percent to their bottom line by better optimizing the management and resale of their returns.”

    Where does it all go?
    Many retailers end up throwing away over 25 percent of their returns,” Moore said. “Holistically, that ends up being over 5 billion pounds of goods that end up in landfills a year from returns.”

    He estimates over the next several years that could swell to 10 billion pounds of returns in landfills around the world.

    For the 75 percent that doesn’t go to a landfill, the condition of the returned item, the timing of when it’s returned, and its location are all key factors in determining what comes next. Some merchandise is inspected and immediately restocked. Some has to be sent for refurbishing or repackaging. Other goods go to a liquidation channel where the items are repurchased by a reseller or consumer. There are occasional scenarios where returned goods are taken apart and components are recycled, or even “upcycled,” like turning shoes into a racetrack, Moore said.

    Return scenarios have gotten more complicated. More relaxed return policies can mean shoppers return items after a season ends, making it hard to sell a winter coat in March, for example.

    Plus, the internet offers retailers an “endless aisle.” That means many items are sold online only. If those purchases are returned to a store, the retailer will have a few choices: ship it back to a distribution or processing center; try to resell it as a one-off item in the store; liquidate, donate or recycle it or throw it away.

    About 70 percent of high-end apparel can typically be restocked and resold, Moore said. If it’s a consumer electronics item or home and garden item that was sealed and isn’t anymore, or has any data on it, it has to be repackaged, refurbished and wiped of data. Only around 30 percent of those returned items can go back into stock immediately.
    More at link.

  8. #247
    Quote Originally Posted by oyarde View Post
    I see Macy's has a big list . Looks like the only one in Indiana is Muncie . In a mall in a college town .
    Macy's is also looking to open newer, smaller format stores. https://www.dallasnews.com/business/...e-town-square/

    Macy’s CEO Jeff Gennette needs some wins, and he thinks he has a promising one about 25 miles northwest of downtown Dallas.

    The largest U.S. department store retailer will open its first Market by Macy’s in the upscale suburban shopping center of Southlake Town Square on Thursday.

    The new concept, the brainchild of Macy’s brand experience officer Rachel Shechtman, will be front and center Wednesday when Gennette meets with Wall Street analysts to update investors on the company, which has lost a third of its market value over the last year.
    Gennette said it’s planning to grow with its off-price concept and new small-store format.

    The 20,000-square-foot Market by Macy’s — about a 10th of the size of a big multi-level Macy’s anchor store — is one of two concepts Gennette says Macy’s has created to appeal to that “large swath that’s not shopping in malls today.”

    The other newish concept is Macy’s Backstage, developed in 2015 as an answer to discounters such as T.J. Maxx and Nordstrom Rack that have shaved market share from U.S. department stores.

    The plan is to step up expansion of Backstage, adding 50 more this year. Most of its 200 existing Backstage stores are carved into existing Macy’s department stores with separate entrances and a different mix of merchandise. Some of the new Backstage stores may be freestanding locations similar to seven of the early ones that opened in the Northeast, he said. Backstage stores are posting sales increases while Macy’s overall has reported weaker sales trends in recent months.

    At the same time, Macy’s is remodeling its mall stores in strong, viable centers. So far, 150 Macy’s stores have been upgraded, and 100 are planned for this year, including Macy’s at The Parks Mall at Arlington. NorthPark Center in Dallas and Stonebriar Center in Frisco were in an initial batch in 2018, and Galleria Dallas was upgraded last year.

    “We’re investing in the malls where the developers are, too,” Gennette said. “These are the still-vital malls that are standing the test of time.”

    Macy’s has been spending about $1 billion a year on its business, including its online operation, which generates sales of more than $6 billion a year.

  9. #248
    I spent some time in North Dallas last summer , did OK without going to a Macy's. Went to Irving to see what dumpster tebowlives was in but never found him . All the other street people are scared of him , they say he has a nasty disposition.



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  11. #249
    Here's the debt level pattern for retail bankruptcies prior this induced pandemic hysteria crash.

    "Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
    "War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.

  12. #250
    2019 Closures Before the 2020 Bubble Pricking
    "Let it not be said that we did nothing." - Dr. Ron Paul. "Stand up for what you believe in, even if you are standing alone." - Sophie Magdalena Scholl
    "War is the health of the State." - Randolph Bourne "Freedom is the answer. ... Now, what's the question?" - Ernie Hancock.

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