THE GHOST MALLS OF CHINA
Amazon,
We sell very little to China that is made in the USA. So technically if China completely fails it should have very little impact.
Because lies are the mother’s milk of Communism.
Everyone Is Asking: “If Chinese Consumption Is Rising, Why Are Its Malls Empty?”
I guess “Everyone” has been asking that except for MNDude. I really had no idea their malls are empty!
..but wait......I thought China was winning and we were losing? I thought China was kicking our butts? I thought we were toast unless we elected the negotiator god to make it all better?
China, How it is - Shopping Malls
https://www.youtube.com/watch?v=_MZUSf5Xfl0
Case in point: Reuters asks this morning “why are malls closing if consumption is rising?”
Overbuilding in response to rising demand is a time-honored business tradition. It has happened in the USA many times. I went through 3 cycles of it in my real estate career.
ZeroHedge, where the economic world is always ending tomorrow.
Maybe the Chinese don’t want to buy on credit and incur $4 trillion in debt.
Case in point: Reuters asks this morning “why are malls closing if consumption is rising?”
Overbuilding in response to rising demand is a time-honored business tradition. It has happened in the USA many times. I went through 3 cycles of it in my real estate career.
ZeroHedge, where the economic world is always ending tomorrow. With helpful charts!
In China, who needs to go to a mall. Tons of foot traffic along any neighborhood street. Why would a store owner pay for a huge rent in a mall when they can pay much less almost anyplace else.
We retail China's consumer crapola so a slow down in Chinese consumer spending has no effect on the USA as we no longer export finished consumer goods to China and Asia. Actually it will make oil prices go down so the net effect is positive for the USA.
Because the Chinese Escalators eat people.
Uh, did Tyler forget China just went through the largest devaluation of its currency in history? That makes consumer prices jump through the roof.
It also explains why the manufacturing sector remains intact and robust because demands for exports remain solid. But then, that was the whole purpose of the devaluation.
Amazon and other on line companies are hiring holiday/seasonal workers.
UPS is hiring part time workers to deliver the gifts ordered from Amazon and others.
When, we have more malls and brick stores closing, don’t blame the economy here and in China.
We are using shopping/buying alternatives we prefer.
Pei-Ping.
The underground malls in Guangzhou (photo above taken by yours truly) were pretty darned busy when I was there in July.
It depends where you look. China has a lot of glittering malls full of stores featuring overpriced domestic "luxury" brands - those are rarely busy. Chinese are also buying true designer brands overseas to avoid the 35% import tax, so there aren't lines going out the door at the Hermes store the way there are in Hong Kong. But places where good products at reasonable prices can be found are still jammed with middle class shoppers at all hours.
It's not too different from the USA. The faux luxury brands popular a decade ago are getting crushed.
I do not see how brick and mortar retail in this country is holding up. If our shopping patterns are any indication of the trend most stores should be closed now. We buy almost everything but food and fuel online. It is just not worth the hassle to go to a store, spend time walking up and down aisles and still only come home without what you went for because it is not in stock. Instead of using what you wanted you compromise and it is never a good compromise.
Online, if you can wait a little bit, your selection is better, prices can be better even with shipping, you can always find your size and you get what you need instead of compromising.
Local taxes are a problem. We are eventually going to have to pay some local taxes on all online shopping or some kind of other local tax will have to be raised.
Years ago someone did a test to see if you could live isolated simply by using online shopping. It was easy. The forecast was that people would cocoon and live isolated. It is possible but not practical. I don’t think we can have a society where almost everything we use can be delivered. Can you imagine the number of delivery trucks running around?
The future model will be something like Sears or Montgomery Ward used to be. You order online and go to a delivery point to pick up your purchase most of the time. Instead of a mass of brick and mortar stores there could be pickup points all online merchandisers would use for a small fee. Home delivery will be an option though but at a cost. Sears or Montgomery Ward blew it.
china aint buying consumer goods
because
it is building up its MILITARY
preparing for WAR
you know GUNS / BUTTER