- In the past several months, Macy’s has announced it will close 63 stores; Sears, 150; The Limited, 250; BCBG Max Azria, 120; Guess, 60; American Apparel, 104; Abercrombie & Fitch, 60; JCPenney, up to 140.
While retail executives are keen to state they do not plan to abandon bricks-and-mortar retail entirely, many now tend to see it on equal terms with online operations. Main street, hollowed out by web-based competition, is increasingly viewed as a tool to be used by consumers “showrooming” – browsing – before buying online for less.
The cost in jobs is stark, with Macy’s saying it expects to see 10,000 workers laid off, including 6,200 managers, or 17% of executives.
- “People are social by nature and will be drawn to gathering places to share ideas and be entertained. It’s not just about making money. It’s about building trust. Retailers who tap into this trend will be rewarded.”
I think that's the key. It also means they're going to have to stop under-training their employees. As someone tech savvy, I avoid places like Best Buy like the plague, even though their prices are often competitive with Amazon. But since their people don't know what they're talking about, why bother? At the same time, I went to Home Depot yesterday, hoping to actually find something that could confirm what I think I need to fix, but there were like 4 employees in the whole store. I went there specifically to get some advice, but again they failed to deliver. I hope they learn.
I was just in my local REI (outdoors goods, like tents and hiking boots), and the place was really busy. Granted their annual customer reward and 20% of coupon just came out, but every time I'm in there they seem to be at least reasonably busy. I think your comment is spot on. They have employees who know their stuff, and I trust the employees and the company. And they must do some customer service training, not sales technique but actually how to work with a customer, because I've always felt like they're trying to help rather than trying to make a sale. I think I've always bought what I was discussing with them.
Dividend season, yo.
Plus, the staff is super friendly, treated and trained well, and as a company REI really supports their customer base through events and classes. Never had a problem there.
Yeah. You have some good points. Knowledge and a social atmosphere you can appreciate do go a long way. I never looked at it from that perspective, but now that I think about it part of the reason I love mom and pop shops so much, from books and comics to antiques to pet supplies, is because of the conversations I have there. Plus their advice is always appreciated and sometimes leads to additional sales, which is a win for both them and me.
Exactly. I was never really into comics, but I at least vaguely knew the guy who ran the comic shop in the next town over since that's where we got all our RPG sourcebooks.
Gaming shops are the classic example: the places people go to play games and hang out. My brother used to spend hours at the local comic shop playing 40K, and got to know a lot of people there. Sadly that place too went under....
It is my sincerest hope that as big box retail continues to flounder, mom and pop shops will start to make a comeback. In my opinion, the atmosphere and level of service in addition to knowing I'm supporting the local economy is well worth both the price premium and the additional time required to shop.
1) Interest rates go down.
2) Income through interest goes down.
3) Investors diversify into "growth" markets.
4) A publicly traded company expanding retail presence is a "growth" market.
5) Stores open to maintain "growth" at a substantial discount because of (1).
6) Publicly traded companies write down losses related to "overhead" (rent and construction) and cease to experience "growth."
7) Investors flee companies not experiencing "growth", limiting cash flow and reserves for things like salary and rent
8) Publicly traded companies close retail locations, lay off workers.
POP QUIZ: can you find the "consumer" in steps 1-8?
- In some areas of Manhattan, retail rents have declined 10% to 15%. But it has come too late for many retailers.
LOL. Bitch, they signed a five year lease with two five year extensions at whatever prices were two years ago. They're stuck with that price for another three years minimum. And that PSF is a jaw-dropping $326 NNN. In English, your 1000 sqft storefront in Manhattan costs $27k per month, plus property taxes, plus maintenance, plus insurance so an easy $30k a month.
That's a lot of t-shirts.