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How Amazon's growth causes retailers to close stores
Philadelphia Inquirer ^ | 05/08/2016 | by Suzette Parmley,

Posted on 05/08/2016 7:03:16 AM PDT by SeekAndFind

vAmazon giveth, and Amazon taketh.

The giant internet retailer said on April 27 that it will create 2,000 full-time jobs by opening two more fulfillment centers in New Jersey.

One will be a 600,000-square-foot facility in Florence, Burlington County, generating 500 new jobs.

The other will be an 800,000-square-foot fulfillment center in Carteret, Middlesex County, that will generate about 1,500 jobs.

Together, the two facilities will bring Amazon's total physical footprint in the Garden State to 2.5 million square feet of space, if you count three existing centers.

The irony is that Amazon made the announcement the day after a news report that retailers were prepping to lay off 37,000 workers this year, due largely to the shuttering of brick-and-mortar stores.

The 37,000 is the most in one year since the 2008 recession - and more than double the number of layoffs in 2015.

Online shopping is the cause, led by Amazon.com.

E-commerce sales nationally - which included catalog sales - were up 14.6 percent in 2015 from the previous year, while retail sales for physical stores rose by a fraction of that - just 1.4 percent, according to the U.S. Department of Commerce.

Moody's senior retail analyst Charles O'Shea said: "We expect more square footage reductions going forward as online sales are growing faster than brick-and-mortar for virtually all non-food retailers."

Some observers say the retail layoffs signify the industry's realignment.

Surely, some of those losing their jobs in "real stores" will be hired to do something else, such as filling carts with online orders at an Amazon fulfillment center versus restocking shelves.

Mike Roth, Amazon's vice president of North America operations, said the new Carteret facility "will offer wages 30 percent higher than traditional retail stores and include benefits, bonuses, and stock options."

(Excerpt) Read more at philly.com ...


TOPICS: Business/Economy; Computers/Internet; Society
KEYWORDS: amazon; competition; helpwanted; retail; retailers
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To: SeekAndFind

Retail shopping has become such a pain in the butt, it is easier and cheaper to do it online.

There is almost nothing I need right away.

In retail the selection is limited. Even the selection of models within a single brand are limited.

I can go online and buy just about anything, in any size, and in any quantity.

Why should I bother going into store, deal with traffic, deal with theives in the lot, and pay a premium to the online world.


61 posted on 05/08/2016 11:47:01 AM PDT by Vermont Lt (Ask Bernie supporters two questions: Who is rich. Who decides. In the past, that meant who died.)
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To: FrankR

Hehe, same age here. Live out in the sticks. I call my weekly trip to “town” my “dodge the retards” day.

I use the self serve automated checkouts at Wally world and the one grocery store I go to. As much as I hate to give $ to liberal socialists, I am shopping more on Amazon.

My sister has Prime and it can be shared among family members, so she added me to hers. Great 2 day shipping, they have stuff that I probably couldn’t find in some specialty stores and I don’t have to dodge the retards. And I can find if it’s in stock and ready to ship online when I’m looking.

So I grin and bear sending my $ to Bezos, but if he puts it towards the Blue Origin, that’s OK. LOL

Now if MickeyD’s, Taco Time, Wendy’s and Jaques ala Cubiquel would just get those automated ordering kiosks, I’d have less retards to deal with.


62 posted on 05/08/2016 12:31:33 PM PDT by hadit2here ("Most men would rather die than think. Many do." - Bertrand Russell)
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To: Ouderkirk

#6 Before going to Amazon, delete your cookies and make sure you are not logged in to Amazon. You will see a lower price. Also use a different pc (work or phone or tablet not on your ISP). If they notice you are looking at an item they will raise the price. May not be much but times that by the millions of sales they get. It adds up.


63 posted on 05/08/2016 2:09:09 PM PDT by minnesota_bound
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To: Flag_This

#33 Have your son do Help desk work. He can sit down all day and make around $60,000. I had 1 co-worker quit after starting just 9 months before to work at another company that gave him a 40% raise doing the same work.
He notified another there was a job opening a few months later and that guy got a 50% raise making in the low 60’s and he says he gets to walk around fixing pc and printer issues among the several buildings at that company along with doing phone calls. He does not have any network credentials.


64 posted on 05/08/2016 2:25:41 PM PDT by minnesota_bound
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To: RegulatorCountry

On the other hand, Amazon and eBay have created millions (literally millions) of micro-retailers.

They have lowered the barriers to going into business to almost zero.

There is a big risk involved in opening a brick and mortar store. The risk involved in selling through Amazon or eBay is almost zero.


65 posted on 05/08/2016 3:04:24 PM PDT by Brookhaven
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To: minnesota_bound

Thank you very much for that suggestion! I will mention it to him.


66 posted on 05/08/2016 3:18:00 PM PDT by Flag_This (You can't spell "treason" without the "O".)
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To: DouglasKC

I never save things to a “list”. I will look at an item and not buy it immediately.

I don’t clear cookies as a previous poster said, bit I look, look at similar lower priced/lesser quality and leave.

Come back in a few days, do the same routine. Then leave it for a week or two. Then come back and look at it and it may be the same price, but usually lower by a few bucks, or 20% in many cases.

The key it is to use their “trackers/cookies” against them.


67 posted on 05/08/2016 3:35:10 PM PDT by Ouderkirk (To the left, everything must evidence that this or that strand of leftist theory is true)
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To: rbg81

Restocking shelves at the 1 minute mark. Amazon was interested in buying this company. https://www.youtube.com/watch?v=rVlhMGQgDkY


68 posted on 05/08/2016 8:06:56 PM PDT by libh8er
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To: Tammy8

Good employees are hard to find, and the cost of doing retail business prohibits paying wages that retain valuable employees. There is also the problem of a public that believes that retail businesses should not make a substantial profit, completely unaware of overhead costs.

Back to customer service; KEY TO SURVIVAL!, and a business owner cannot give away good customer service or he will be gone. Customer service must be compensated either through product sales margins or labor charges.

Without giving away my own solutions to working with a public that has become accustomed to buying at near wholesale prices, I say it can be done.

Now concerning government intervention into business, don’t get me started on how our country’s socialism has penalized the ambition of retail business owners. That is a LARGE part of the cost of doing business.


69 posted on 05/08/2016 8:14:48 PM PDT by Blue Collar Christian (Ready for Teddy, Cruz that is, but now opposing Hillary for Trump.)
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The few shippers also benefit from this trend.


70 posted on 05/08/2016 8:17:00 PM PDT by Gene Eric (Don't be a statist!)
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To: The Antiyuppie

I hear ya. It is definitely cheaper to buy things over the Internet than locally. However, at some point, people gotta have jobs.


71 posted on 05/09/2016 3:12:57 AM PDT by rbg81 (Truth is stranger than fiction)
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To: Ouderkirk

i leave stuff in the Amazon shopping cart for weeks and months as kind of a list of potential buys.....Today I have 14 items...my usual number. Its like window shopping.

This works against what you mention. Of Amazon lowering prices for me individually?


72 posted on 05/09/2016 4:09:14 AM PDT by dennisw (The strong take from the weak, but the smart take from the strong)
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To: dennisw

You can scout out a product on Amazon and read the reviews. Then often you can buy cheaper on ebay either direct from China or it might be Chinese made but sitting in a US warehouse. Black toner for laser printers? Amazon is a rip-off, go to ebay.””

Thank you Dennis. Good info. I try to buy US when possible. I bought a log jack made in USA two weeks ago. It was a few bucks less to buy it direct from the company than from Amazon.


73 posted on 05/09/2016 4:46:06 AM PDT by Neoliberalnot (Marxism works well only with the uneducated and the unarmed.)
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To: Ouderkirk
The brick an mortar store sales people don’t have the ability to negotiate prices.

Most of my general purchases are the top of the line in sporting goods. While there are several sporting goods outlets near me (Dicks, Dunhams) they carry the low end items in softball bats and softball gloves and most of that stuff is for kids.

The gloves and composite bats I use can only be obtained thru sport specific outlets on the internet.

74 posted on 05/09/2016 4:55:21 AM PDT by Hot Tabasco (#HillaryForPrison-2016)
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To: Ouderkirk
As a side note, I stopped in to an Army surplus store on Saturday and purchased a shirt. This was my second time and they had already rented out the storefront next door to accommodate their recent expansion.

When I congratulated the owner about this she said that they are preparing to expand to internet sales........That should be huge for them.

75 posted on 05/09/2016 5:00:05 AM PDT by Hot Tabasco (#HillaryForPrison-2016)
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To: FrankR; hadit2here
The reason I have turned to on-line shopping more recently is so that I don't have to mix with all the unemployed (usually old) white trash who tend to berate the working staff for services for which they will not pay and to which they are not entitled.
76 posted on 05/09/2016 5:27:17 AM PDT by Brass Lamp
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To: Neoliberalnot
Just repeating here...... Find item on Amazon and read reviews. The you use your smarts to see if that item on ebay is identical and usually cheaper. Not all the time though, if you have enough items to buy at Amazon and go over the $49 mark for free shipping. Obviously you always factor in the shipping price :)

In all my Amazon purchases I have never made one without getting free shipping and never will. I just wait until I have enough items to qualify.

 

___________________
___________________

 

Here is something found on ebay and Amazon I was recently scoping out. Identical of course. Ebay is cheaper even with any Amazon free shipping factored in

 

FROM AMAZON

Neiko® 00823A 1/4-Inch Shank Hole Saw Bits with Heavy Duty Diamond Dust Coating | 5-Piece Set by Neiko

In Stock

$10.56

Eligible for FREE Shipping

  •  

 _____________________________________________________________________

 

 

 

77 posted on 05/09/2016 5:40:19 AM PDT by dennisw (The strong take from the weak, but the smart take from the strong)
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To: Neoliberalnot
Thank you Dennis. Good info. I try to buy US when possible. I bought a log jack made in USA two weeks ago. It was a few bucks less to buy it direct from the company than from Amazon.

Here is another trick. Find that log jack (or whatever) on Amazon and ebay. Then from their information on Amazon and ebay....figure out what the sellers stand alone direct website is. Some have their own sites. Some do not

Funny but half the time they are selling cheaper on ebay/Amazon than their own website and half the time more expensive. Shipping must be factored in. The direct websites seem to have higher shipping...But you have to see. Each situation is different.

78 posted on 05/09/2016 5:46:05 AM PDT by dennisw (The strong take from the weak, but the smart take from the strong)
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To: Neoliberalnot

I recently bought a reverse osmosis system from a company I never heard of. Called Reverse Osmosis Revolution.

Where did I discover them? I Found them selling on Amazon or ebay..it might have been both. I googled Reverse Osmosis Revolution and found their website. I dealt with them directly and was able to add and subtract a few features for the R.O. System (as listed at Amazon) plus I saved $$$ compared to being lazy and pushing the Ebay/Amazon buy button.


79 posted on 05/09/2016 5:53:22 AM PDT by dennisw (The strong take from the weak, but the smart take from the strong)
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To: dennisw

Agreed, I never pay for shipping either. I see you are a real tool guy. I often wish I had taken more shop courses.


80 posted on 05/09/2016 7:14:56 AM PDT by Neoliberalnot (Marxism works well only with the uneducated and the unarmed.)
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