Retail Apocalypse: Why Are Major Retail Chains All Over America Collapsing?

TEC ^ | 2-18-2013 | Michael Snyder

[Cringing Negativism Network]

Change the tax code, and encourage manufacturing to return to America.

It is that simple.

Build stuff here.

[cuban leaf]

Good thing this is a consumer driven economy or we we would be good and totally scre...wait...

[svcw]

How would retail be revived if there is manufacturing in the US?

Change the tax code so people can keep and spend their money as they see fit.

[Diana in Wisconsin]

Gee. When given the choice of expensive food, a roof over my head, expensive gasoline and heat in the winter...I’m PRETTY SURE I’m not going ot be spending those dollars at flippin’ Radio Shack, LOL!

I’m as thrifty as they come, and I’ve gotten A LOT thriftier these past five years.

And not always due to CHOICE. Worst. Congress. Ever. Worst President. EVER.

[blam]

The Era Of Giant Chain Stores Is Over — And They've Ruined America

[old and tired]

I am so sick of hearing that we’re doing fine because we’re in the top 10 percent of income. Bologna! We’re in the top ten percent of income and we most definitely are belt tightening and coupon clipping in ways we haven’t done in many, many years. I’ll bet most everyone I know in my family and geographic area is not only in the top 10 percent, but more like top 2 percent of income. And you know what? I’m better off than just about all of them because our kids are grown. We’re done paying for school and braces, etc.

[cuban leaf]

The government dependence thing is interesting. My neighbor fought for years to get to full disability. After being turned down repeatedly in court, he finally got it last year. It was celebration time. He works a garden, has horses, but has disability.

And I just joined a band where the leader fell off a roof (he’s a roofer) and is going for full disability. He lives for fee on an elderly lady’s farm in a house that is such a dump that one of the exterior walls is missing it’s skin, showing what is left of the fiberglass insulation and interior wall. But he pays no rent. It’s a good thing because he gets ALL of his income from playing in a bar band. He’s ridiculously good, though...

But he can get around. Just not well. He has a bit of a limp.

[Republican Wildcat]

The mainstream media continues to proclaim that we are experiencing a robust "economic recovery", but at the same time there are a whole host of indications that things are continually getting worse.

The media has no interest in reporting any factual data like this the public - they have much more important things to spend their time reporting - such as Marco Rubio drinking water when his throat gets dry as a major, horrific scandal of epic proportions.

They continue to report a good Obama economy even with GDP dropping 0.1% in the last quarter.

[driftdiver]

There’s a supermarket in the South East called Publix. They made a habit of providing clean stores, great customer service and a reasonable price.

They are beating Walmart in the grocery sector and put other supermarket chains out of business.

They aren’t the cheapest but they are always busy.

[nascarnation]

One thing to consider is trading down - notice that Dollar General and Family Dollar aren’t on that list.

Even Wal-Mart is feeling strong competition on the low end.

In the “new normal” of Baraq, life is hard if you’re not well off or on the govt dole.

[Cringing Negativism Network]

What we have failed to recognize is that manufacturing is a critical part of finances.

We cannot import things, without exporting an equal amount.

We cannot.

We need a balanced budget. We need to receive in our export account as much, as we spend on our import accounts. We do not.

That is what is happening to our economy. And nobody is saying one single word about it. Not Dems. Not Republicans. I am really hoping to hear something to this regard out of the Tea Party, but still waiting.

We need to return American industry.

Now.

[Colonel_Flagg]

"If Congress does not do anything about the "sequester"..."

(snip)

"Unless Congress steps in..."

__

Uhh.

This is Der Leader's sequester. It was what he wanted and what he agreed to. Republicans gave him his sequester and his tax hikes.

Don't want the sequester? It's up to Der Leader. He owns it.

[Oldexpat]

We traveled North America by RV for three years from 2006 to 2009. Visiting many suburban malls just doing our needed shopping. We got the distinct impression that many of these malls and big box stores were built in advance of population around them. The industry just seemed over built and over stocked for the traffic they were getting. Now, with online shopping and high gas prices..people are using online a lot more. I just finished an order 10 minutes ago..no use going out and visiting three or four stores finding a product that fit me.

[grobdriver]

When given the choice of expensive food, a roof over my head, expensive gasoline and heat in the winter...I’m PRETTY SURE I’m not going ot be spending those dollars at flippin’ Radio Shack

If only Radio Shack had a guns and ammo aisle (and could keep it stocked).
That's where a lot of disposable income is going these days...

[SkyDancer]

He learned economics by selling ice cream - and also employee theft by giving away ice cream to kids.

[adorno]

Incomes are declining, taxes are going up, government dependence is at an all-time high, and according to the Bureau of Labor Statistics the percentage of the U.S. labor force that is employed has been steadily falling since 2006.

Mission Accomplished!

So say Obama and the democrats.

The biggie for the democrats was creating more dependence on government, which means that, they will have a much bigger pool of democrat voters, and dominance by the democrats for a long time.

Never mind that there will be pain along the way for many millions; it's the results that count, and what counts for the democrats, is creating government dependence. Party before country!

[USFRIENDINVICTORIA]

While I agree with most of what you wrote; and while I also agree that many economic indicators are not positive -- I'm compelled to point out that the closure of giant chain stores is not one of those negative indicators. At other times, the closures could be a negative indicator; but, in this instance they are an indicator of something working right.

The giant chain stores mentioned have simply failed to evolve fast enough, in the face of the Internet commerce revolution. The problem isn't that people have stopped buying the type of merchandise these stores sell -- it's that people are buying the merchandise from on-line retailers instead. Consumers (i.e. us) want the lowest prices, and the best shopping experience. Unfortunately, for the giant bricks & mortar chains, the best prices and best shopping experience are in cyberspace.

Every recession precipitates some overdue changes. In an ordinary, business-cycle type recession, the changes might be nothing more than adjusting inventories. In a secular recession (or depression, if you prefer), major structural changes occur. The economy that emerges from the recession (depression) is more efficient and more productive. On average, everyone is better off. (That's the "greater-good" argument; and it does gloss over the pain and suffering of those most directly affected by the changes. In this case, the owners and employees of giant chain stores.) In a real sense, recessions are a necessary evil.

This is just the latest example of the "creative destruction" that Schumpeter (amongst many other economists) recognized as the greatest strength of free-enterprise capitalism. The very worst thing would be for government to step in and "do something" (for instance "rescuing" the giant chain stores). The big chain stores displaced the small independent stores on Main Street -- now, it's their turn to give way to a different business model.

[RetiredTexasVet]

The MSM is parroting the crap that the Food Stamp President’s administration puts out. If they could view themselves honestly, they would realize they are the new communist propaganda machine. Having visited several communist countries in the 70s, it is eerie and scary to see the MSM emulate the old communist propaganda machine.