by Jack
Several recent reports say American’s currently have 600% more retail space available than in Europe. We’ve over built in relation to the demand and this has caused a bubble. This is also why we’re seeing so many dead and dying, strip malls and mid-level malls.
Amazon Prime and internet retailers are certainly a major reason for the high vacancy rate in retail, which is approaching 2008 levels, the high point of the great recession. But, landlords haven’t quite figured it out. They can’t charge the rent they think they should get. High rent is taking its toll too. Right now, the times do not favor brick and mortar retail stores, especially small chains like Radio Shack, Best Buys, etc., and of course individual ownership stores. Upper end malls are still doing well, but everybody else…not so much.
During the recession people browsed the internet to find bargains and avoid state sales tax. Polls say most people (66%) would prefer the convenience of buying local and checking out products on the shelf, but they are prepared to forego that if it means saving 30% over retail prices! This is especially true of the boomers. Remember, many of them lost a good portion of their life savings to the real estate bubble or the stock market bubble. The boomers are shopping wherever their dollars will stretch the furthest and this generally means buying on the internet.
This trend has played havoc for K-Mart, Sears, Wards, and many old traditional retailers. Over 3,000 chain stores have filed for bankruptcy protection in 2017 and according to the business data report about 148 businesses file for protection every day. These are tough times and President Trump has an extremely difficult task ahead to get American’s back to work. Obama spent the last 8 years creating debt and doing next to nothing to grow the economy. His presidency was nothing short of an economic catastrophe for America.
yes
Now look at the hedgefund managers who bought up some of these companies and are dissecting them into their hedgefunds. They sell the real estate to their hedgefund companies. Sell off the brands and pretend they are trying. All the way to the bank. The Romney plan is alive and well.
Wall street at it’s best.
BTW Sears is failing by design…. Eddie lambert is a hedgefund manager period. Should fall any time now.
Obama forced developers to develop? How, exactly?
You sure it wasn’t longstanding Republican tax law supporting (Wall Street) capitalist excess? We’d get the crap off the books if we could … but nobody’s holding their breath waiting on this Congress … or any other. On this point, Dewey has a solid understanding.
Just for fun, which “longstanding Republican tax law” are you referring to?
What a stupid, truly stooooopid, comment. Not only does it place blame for tax law, as if that had anything to do with this problem, it places blame on Republicans alone, as if Democrats haven’t had their greedy little hands in the (Wall Street) game doing favors while lining their pockets.
Here’s a tip for you dearie, not only do Democrats have their little fists in the Wall Street game they LIE ABOUT IT to their constituents! Part of their divisive strategy. So phony!!!
2008, LA Times, “Democrats are darlings of Wall St.”
2014, Bill Moyers, “Wall Street’s Democrats”
2015, CNBC, “Clinton rakes in Wall Street cash amid tough talk”
Libby’s assessment completely ignores the shifts that are going on the the retail industry because of the internet and a nearly decimated middle class. WE KNOW who is responsible for that..Barack Obama, his lousy Keynesian advisors, and his Marxist ideals!
Less than 2% growth over eight years equals the worst economy since the Great Depression! Less than 2% growth means few job opportunities for the working men and women of America. It was a particularly horrid and awful eight years because it didn’t have to be that way…so many lost years for the middle and poor classes.
Whats more insane and irresponsible? They refuse to admit the failure and work to right the wrong!!!!! Unforgivable!
Jack retailers have been in trouble for some time. Even before the crash Sears and K-Mart were among those having trouble. The internet certainly plays it’s part in the decline of in-store sales. But for heavens sake…middle class Americans in fly over country have had little to nothing to spend on extras over the last eight years between the lousy job market and rising costs for basics like food. Another difference this time is the young people who have been unable to find work. They have put off buying homes and cars and furniture, opting for the minimalist lifestyle…some in moms basement. It’s difficult to say how the box stores would be doing if our economy had improved after the crash but I doubt things would be much different. We are living through a shifting sands period.
I’m surprised that the folks that run Sears didn’t see a golden opportunity in the internet earl on. They were the prototype in a way since they began as a catalogue store.
One investment person this morning said WalMart will give Amazon a run for it’s money. They’re upping their internet game with local pick-up available at “warehouses” already in place.
I did hear or read a report that the millenialls are beginning to branch out a bit from their minimalist ideals. More of them are buying houses…even if some of the houses are tiny or off grid. 🙂
Who knows where we go next? It’s a fascinating and difficult time.
And oh yes, let’s bash the hedge fund managers that bring cash and experience to failing companies already at risk for big losses:
Dewey imagines a world without risk. That makes him a fool! It is anything but that.
If people were unwilling to take risks we’d still be living in the stone age. If people were all hostile to profits, as Dewey is, we’d still be using dung for warmth and toiling like fools sunup to sundown to grow a few pitiful turnips.
And those with expectations that people of any class (in any system) are going to behave perfectly (like Jesus) need to be taken away by the men in white coats.
The lack of appreciation for the blessings that flow out of capitalism in America is astounding. They should pick another country and go there!
Someone should tell Dewey that a strip mall is not where he should go to get a lap dance.
😀
Pie thanks but they are all yours. I have no problem in that area.
But Hey ……………….
Have At It Hoss!
What ever Floats your Boat!
Some may have problems in that area it’s OK
I understand
More good reasons to avoid strip malls – getting attacked in the parking lot, having your car dinged, phony “SALE” signs, and pandhandlers!
So Let me get this right do not support local business and then cry about jobs right?
bottom line look at what owns these businesses.
Internet is a Battle. These hedgefund managers spend millions trying to get on the Amazon bandwagon, Fail, and let the stores go.
Look At Eddie lampert and what wall street has said all along about his intentions.
And if you do not shop locally and buy as much Made in USA as possible, do not whine about jobs