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As everyone has mentioned , these closings have nothing to do with the economy and everything to do with some retail stores just not being relevant any longer. I work retail, we are having our best years ever, and I work in a luxury product market. People do not spend money on luxury items when things are getting bad or already bad.
The internet is the wave of the future. Brick and mortar stores will be just like the old 5 and 10 cent stores that no longer exist pretty soon. A few will survive, but not the weak ones, like Sears and K Mart.
the push for higher minimum wage, the retail jobs that employ the low income workers close shop... hows that higher minimum wage working out while in the unemployed line?
the higher minimum wage sticks around during the crash unless law is ammended. means it gets harder to hire people during economic hard times as well. better job "gig" jobs like uber stick sround, thats the future "employment" option after pricing the low skilled out of the workforce. harder for small businesses to start to since it requires higher starting costs and requires quicker time to become profitable
K-Mart closed down all its stores here 15 years ago, then The Future Shop, The Good Guys, and Circuit City all left. But business is going well for most others. Online sales are making a big difference in whether or not marginal stores will remain open. The biggest reason that I often look online for things, is the customer reviews that are very helpful in picking the right item.
Buying on-line with free shipping makes more sense for most people.
People have stopped shopping at stores where they must do a random serial search for an item and end up paying too much.
Yup...gone are the days of schlepping from store to store hoping they have a specific item, except in grocery stores.
I'll hit 2-3 stores looking for something before I give up....sometimes even 4-6. It's because there is no reliable, cost-effective online alternative. Yet.
Buying on-line with free shipping makes more sense for most people.
People have stopped shopping at stores where they must do a random serial search for an item and end up paying too much.
Agreed. I also agree with other people who say that retail stores close all the time. Closures just aren't noticed as much when they aren't large chains and franchises. Here in Houston, we have a glut of restaurants. It seems that every day there is a new restaurant opening offering this and that that. Probably 80% of them close within a year. The overhead and competition on a brick and mortar store is high, and profits are usually low.
Recently I have been reading out one big/branded store shutting down everyday. Macy's planned to shut down 68 of it's store, read something about Sears and Kmart too. The Limited filed a bankruptcy and is shutting down across the country. Aeropostale filed bankruptcy too last year.
Is it just me thinking about us hitting the recession again this year/next or is anyone else getting this thought too. I was searching on google and found many articles predicting for this year.
No. It's the normal progression of what started years ago because of online shopping. Brick and mortar stores are continuing to close.
How to tell if a recession is coming: Look at the unemployment numbers. Recessions and depressions are foretold by increases in unemployment.
We are in a GROWING economy. Unemployment is 4.7%, the lowest since before the recession, and has been decreasing every year since the recession of 2009.
Almost 16 Million jobs have been added since 2010. Jobs have been increasing every year. Inflation is inching up (inflation decreases in recessions). Interest rates are going up (the opposite of what happens in a recession).
We are in GROWTH mode, not recessionary mode. The growth is slow but steady.
the push for higher minimum wage, the retail jobs that employ the low income workers close shop... hows that higher minimum wage working out while in the unemployed line?
the higher minimum wage sticks around during the crash unless law is ammended. means it gets harder to hire people during economic hard times as well. better job "gig" jobs like uber stick sround, thats the future "employment" option after pricing the low skilled out of the workforce. harder for small businesses to start to since it requires higher starting costs and requires quicker time to become profitable
If a business can't pay a living wage to its employees, it's not a legitimate, profitable business and SHOULD close.
This will scale back the businesses living off the backs of the poor, who are often taken advantage of with the attitude of "you're lucky I'm giving you a job," and leave room for real businesses who know how to turn a profit without taking advantage of the poor.
Macy's is fine. It is doing its OWN online business, so all those stores aren't needed anymore. It's expensive to pay for all those employees, leases, insurance on the brick and mortar business, local warehouses to store inventory. Now it can be more cost effective by supplying its good online and keeping inventory in central warehouses. It lowers the overhead considerably.
Notice, though, that jobs are increasing by millions every year. So there are plenty of legitimate businesses that are doing well, and the economy is going well.
Progress changes things. The same thing happened when the country transitioned from the horse and buggy to automobiles, from hand making production to machine dominated industries.
In the old days, companies paid pennies to their workers, sometimes locking them in the factories from dawn to dusk, not providing safety equipment or safety exits. They took advantage of poor people who needed jobs. That was wrong, so the govt took care of that...and business THRIVED, while poor people, though still poor, at least didn't lose their lives at work as often and didn't suffer as much.
If businesses would do the right thing themselves, intervention would not be necessary. Unfortunately, history shows us that businesses will not do the right thing, unless they are made to. Companies exist solely for the purpose of making a profit. They are not in the business of doing the right thing for others; they are in the business of doing whatever is right for their business. All it takes is one such business to underpay their employees; that forces the others to lower their pay in order to compete and survive. Even if they want to pay more, the business environment prevents them. So a law requiring basic minimums like a meager wage is sometimes necessary to make sure that the people who are in a vulnerable position don't get taken advantage of too much.
The Macy's locations that are closing in Houston are located in really crappy malls in mediocre parts of the area. They are closing because no one with any money wants to go to those areas to shop.
Yup...gone are the days of schlepping from store to store hoping they have a specific item, except in grocery stores.
I'll hit 2-3 stores looking for something before I give up....sometimes even 4-6. It's because there is no reliable, cost-effective online alternative. Yet.
A lot of brick & mortar retailers operate an online store these days, but in many cases, their website will indicate if a product is available in one their local retail stores. I personally like to purchase in person from a brick & mortar, just because I like to touch and feel something before the purchase, I guess; or sometimes, I need something today, if possible. I usually save the online purchases for things I can't get in a local store, I don't need it right away, or I can get it for a lot less online.
For example, one of the coasters on my elderly Mom's walker broke off due to wear the other day. Made it difficult for her to get around. I did an online search for the same replacement coasters, and found Walgreens was among the places that had them available, and the only seller I could identify as having a local retail store. It said they were also available in limited stores. I checked my city and found a couple of local stores that had them in stock. Went right out and purchased them from one of those stores that day. Didn't have to pay for expedited overnight shipping. Same price in store as online.
All of the above are valid, but add to that the trend of higher minimum wages hurting them, and in some markets, extremely high commercial lease rates and lack of available retail space. Here for example, retailers lose their leases, and the retail buildings are demolished for high rise apartments or offices, some with expensive retail on street level. Our nearest JC Penney closed not because of poor sales, the mall landlord refused to request their lease, opting for a new 365 (by Whole Foods) market, more parking, and a couple of high end restaurants.
Not here, I don't think. We seem to always have lots of empty retail space.
Quote:
Originally Posted by bpollen
If a business can't pay a living wage to its employees, it's not a legitimate, profitable business and SHOULD close.
This will scale back the businesses living off the backs of the poor, who are often taken advantage of with the attitude of "you're lucky I'm giving you a job," and leave room for real businesses who know how to turn a profit without taking advantage of the poor.
Macy's is fine. It is doing its OWN online business, so all those stores aren't needed anymore. It's expensive to pay for all those employees, leases, insurance on the brick and mortar business, local warehouses to store inventory. Now it can be more cost effective by supplying its good online and keeping inventory in central warehouses. It lowers the overhead considerably.
Notice, though, that jobs are increasing by millions every year. So there are plenty of legitimate businesses that are doing well, and the economy is going well.
Progress changes things. The same thing happened when the country transitioned from the horse and buggy to automobiles, from hand making production to machine dominated industries.
In the old days, companies paid pennies to their workers, sometimes locking them in the factories from dawn to dusk, not providing safety equipment or safety exits. They took advantage of poor people who needed jobs. That was wrong, so the govt took care of that...and business THRIVED, while poor people, though still poor, at least didn't lose their lives at work as often and didn't suffer as much.
If businesses would do the right thing themselves, intervention would not be necessary. Unfortunately, history shows us that businesses will not do the right thing, unless they are made to. Companies exist solely for the purpose of making a profit. They are not in the business of doing the right thing for others; they are in the business of doing whatever is right for their business. All it takes is one such business to underpay their employees; that forces the others to lower their pay in order to compete and survive. Even if they want to pay more, the business environment prevents them. So a law requiring basic minimums like a meager wage is sometimes necessary to make sure that the people who are in a vulnerable position don't get taken advantage of too much.
I agree.
~~~
Personally, I hate shopping. I don't have the time or the desire to fight traffic to go to several stores looking for an item. At this point, I know what works, and can order on-line pretty safely. The last time I went to Macy's, they were under-staffed. No one offered to help me. It wasn't the same experience it used to be. I was able to walk across the parking lot to Home Goods and find what I needed for a lower price.
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