AJC: Big boxes struggle to stay relevant (Dallas: how much, to buy)

[bUU]

Originally Posted by wasel

That's a cop out.

Indeed, not reading the message that you were replying to was a cop out.

Originally Posted by wasel

Second, you have not provided any factual information about which YOU are requesting from others.

Mainly because I feel that you should have done your own homework before posting.

Online sales totaled almost $305 billion in 2014, up 15.4% from the year before, increasing its share of non-food-service retail sales from 5.8% to 6.5%. [Source: US Commerce Department.]

That's how you analyze the available data to determine how the American consumers' purchasing behaviors are changing over time.

[brownhornet]

Originally Posted by Newsboy

And what kind of life is that? Just sitting at home behind a computer screen all day? Ordering stuff online? Waiting for the Amazon man to come calling?

There is something to be said for going to a bricks and mortar store and actually engaging other human beings in one-on-one commerce. I value good costumer service. I appreciate a smile, a friendly greeting, a sincere "have a nice day!" It's troublesome to me that so many people of a younger generation are so content to live their lives via electronic devices ... And miss out on the very things that make living so wonderful in the first place.

Not to mention ... going to a store and buying a pair of shoes means more people EMPLOYED. And I'd never, ever buy a pair of shoes without trying them on first!

Believe it or not, going to Walmart and a lot of these other big box stores absolutely SUCKS. Store is packed and they have 4 lanes open. I don't care about engaging with people when im buying clothes...Amazon offers better prices and that's exactly why they're beating Walmart into the ground right now.

[brownhornet]

Originally Posted by bUU

Indeed, not reading the message that you were replying to was a cop out.

Mainly because I feel that you should have done your own homework before posting.

Online sales totaled almost $305 billion in 2014, up 15.4% from the year before, increasing its share of non-food-service retail sales from 5.8% to 6.5%. [Source: US Commerce Department.]

That's how you analyze the available data to determine how the American consumers' purchasing behaviors are changing over time.

lol, I would think anyone would know online retailers are increasing while physical retailers are declining. I mean i'm not saying that I don't go to stores ever, but if I can get the same tv on Amazon for $300 bucks less than I can in Best Buy and they're going to ship it to my door in two days for free, why would I buy it at best buy? As cheap and as crappy of a company as Walmart is, the fact that they're trying to offer two day shipping now says it all.

[sedimenjerry]

Originally Posted by brownhornet

Believe it or not, going to Walmart and a lot of these other big box stores absolutely SUCKS. Store is packed and they have 4 lanes open. I don't care about engaging with people when im buying clothes...Amazon offers better prices and that's exactly why they're beating Walmart into the ground right now.

I just bought something from Amazon today instead of going to Walmart. Took all of 5 seconds.

[rcsteiner]

Originally Posted by brownhornet

Believe it or not, going to Walmart and a lot of these other big box stores absolutely SUCKS. Store is packed and they have 4 lanes open. I don't care about engaging with people when im buying clothes...Amazon offers better prices and that's exactly why they're beating Walmart into the ground right now.

That's why I only go to Walmart infrequently, and normally after bar close. There's usually one or maybe two lines open, but usually not much of a line.

[sedimenjerry]

Originally Posted by rcsteiner

That's why I only go to Walmart infrequently, and normally after bar close. There's usually one or maybe two lines open, but usually not much of a line.

2/3 AM walmart is a strange place haha

[ATLTJL]

What the internet is primarily doing is accelerating the decline of retailers who are not nimble. It is simply another competitive force. Notice that most of the big boxes disappearing are ones that were slowly becoming irrelevant anyway.

Smart retailers are realizing that they can use locations for omnichannle fulfillment to effectively compete with Amazon. So for example, if you order from Target.com, your order can arrive the very next day with no expedited shipping charges when Target picks from the store 15 miles away instead of a massive distribution center in Kansas City. All of these locations will double as showrooms and mini-distribution centers. Home Depot has seen tremendous success with allowing customers to purchase online, then pick up in-store a few minutes later. So yeah, some big boxes will shutter...but only the ones that would have eventually anyway. The way I see it, Amazon isn't killing local retailer. It's just forcing it to be smarter. In the end, the customers will win because that's capitalism.

[bUU]

Originally Posted by brownhornet

lol, I would think anyone would know online retailers are increasing while physical retailers are declining.

Which is why I didn't provide the data in my earlier comments to wasel. I would have thought anyone presuming to contribute to the discussion knew these most basic facts of the situation.

Originally Posted by ATLTJL

So for example, if you order from Target.com, your order can arrive the very next day with no expedited shipping charges when Target picks from the store 15 miles away instead of a massive distribution center in Kansas City. All of these locations will double as showrooms and mini-distribution centers.

You mean, all the remaining locations. Target is slowly closing stores. I believe their total number of stores is 1%-2% lower than it was at the peak of their B&M business. The closures may accelerate as their online business draws more revenue away from expensive-to-operate, smaller and more remote stores, without supermarket revenue to fall back on.

Originally Posted by ATLTJL

The way I see it, Amazon isn't killing local retailer. It's just forcing it to be smarter.

By becoming, substantially, online retailers. "Joining them" has the same impact on the migration from B&M to online.

Originally Posted by ATLTJL

In the end, the customers will win because that's capitalism.

Tell that to the rural customers of smaller stores reflected on this list:

http://time.com/money/4304622/stores-closing-in-2016/

[ATLTJL]

Interesting list.

I'm not saying the internet isn't affecting things, I'm just not as doom and gloom about it as others. Especially because some e-tailers are seeing the benefit of opening physical stores, so I don't think the model is dead.

Warby Parker, Frank & Oak, and other e-retailers are opening actual stores. Huh?

I'd like to add a bit of my own personal color (I'm not a retail executive) to the list that isn't covered in mass media reports.

Wet Seal - a fashion retailer that saw massive growth in the 80s, it could just be falling out of favor with today's shoppers from increasing competition for newer and more agile retailers in the same space.

Office Depot - facing increasing competition from Staples and Office Max, this has probably been coming for a long time. Since the bulk of OD sales comes from corporate accounts, I assume the retailer is failing somehow in this space.

Barnes & Noble - This is a backward retailer that never figured out how to match B+M prices to its own online offerings. Amazon probably really helped kill this company because it's been in the book business for so long and Kindle slaughtered Nook, but as it figures out how to attract shoppers with in-store coffee shops, I don't think B&M is totally out.

Walgreens - Grew very fast for many years, maybe too fast. I'd say the competition here is from CVS and Rite-Aid more than Amazon as well as the Health Care Act and other changes to prescription fills that are drawing more people to mail order pharma at the behest of the insurance companies.

Children's Place - I don't know what this retailer does, but assuming it is a toy store, toy retailers have been seeing competition from Wal-Mart and Target long before e-commerce ever happened.

Aeropostale - not sure

Wal-Mart - probably grew too fast and opened too many foolish locations. The model is also largely falling out of favor and if you look at Wal-Mart today, it's what I imagined K-Mart looked like in the 70s....aging stores and management that isn't keeping up with changing demands and experiential expectations.

Finish Line - unfamiliar with them.

American Eagle - like Wet Seal, the fashion retail business has always been high turnover with aging stores out as newer, more relevant stores hit the trends better.

Sports Authority - I'd say hurt more by mega-sports retailers like Dick's and specialty stores that sell higher quality products and offer better experiences like REI and Big Peach Running Co.

Sears/Kmart - no comment, this retailer has been in trouble for the past 20-30 years.

Chico's - don't really know.

Pier One - also not sure, a store that specializes in unique products should weather the internet well. Perhaps competition from places like Etsy.

Sports Chalet - unfamiliar

Macy's - will definitely survive, they are doing omnichannel retail well. Closing 40 stores is nothing, department stores have always closed underperforming stores. When you consider Macy's has locations at Greenbriar Mall, Macon Mall, Northlake, and Cumberland, it's easy to see that they probably just have too many stores.

Gap/Gap Kids - been in trouble for a long time, facing cannibalization from its own Old Navy and Banana Republic Brands. Gap has been squeezed from both sides for quite some time now.

Target - closing 13 stores in its empire is barely a blip on the radar, but Target's decisions have remained a mystery to me as I can't figure out why they closed Gwinnett Place, which I'm positive wasn't underperforming. Not sure what Target is doing.

J.C. Penney - like Sears, Penneys has been on the verge of bankruptcy forever...I think they've even declared a few times.

All this is not to say that the internet isn't impacting things, but aren't these all stores that would have seen increased competition from another source somehow, even if the internet was never created? In the future, I expect to see other closings from stores that grow too fast and recklessly. I'll say right now that I don't see how Sprouts can possibly sustain the growth they are enjoying now, I expect at least half the Atlanta Sprouts stores opening today to be gone within 10 years.

Anyway, that's my take....retail is terribly competitive, and the competition is always going to come from somewhere and weed out the companies that don't play the game exceedingly well.

[ATLTJL]

Believe it or not, going to Walmart and a lot of these other big box stores absolutely SUCKS. Store is packed and they have 4 lanes open. I don't care about engaging with people when im buying clothes...Amazon offers better prices and that's exactly why they're beating Walmart into the ground right now.

I think brownhornet makes an excellent point...

One of the huge problems facing brick and mortar retailer is SERVICE. I don't mean in the form of knowledgeable employees, I mean in the form of speed. How many times have you gone to Wal-Mart to buy something, then just put it down and left the store upon seeing the long line to checkout? This is a huge threat to retail. It used to enjoy the benefit of easy returns, but now you can easily print out a return label, tape it to a box, and leave it for UPS to come pick up and bring back to Amazon for no cost (at least, if you're a Prime member). That's MUCH easier than dealing with the return process in a retail store.

To add to my point, it's not just keeping up with trends and merchandise, it's also keeping up with experiential expectations. That means getting people what they want and getting them in and out. Many of the stores listed on the store closing collection are ones that have terrible checkout procedures (I've literally had to stand and yell in a Macy's, "Does anybody want to take my money???").