Community Chat

[itiswhatitis]

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@Trix wrote:

All of the responses posted here have merit.  The convenience of having any type of merchandise you want conveniently available with a few clicks has definitely impacted brick and mortar stores.  However, the stores which have closed or are struggling had the opportunity to heavily market an online presence to compete in that area.  Many of them failed to do this.  I find it surprising that stores like Penney and Sears, which were founded and built around mail order catalogues, had such a hard time reverting back and developing extensive mail order departments to service the growing number of home shoppers.  This failure has to be factored into their demise.

Many financial professionals support the reasoning that frivolous merchandise doesn't sell that well anymore. This suggests that the masses are being more discretionary when it comes to shopping for the sake of shopping.  With the middle class holding onto more of their money, retail is bound to feel the impact.  Those considered to be wealthy is probably only 10% of the population.  They alone cannot hold up retail.  A growing number of Americans of average means seem to be less inclined to want to keep up with the Jones.  They consider buying clothes to hang in the closet with the tags never being removed, expensive collectibles, things you don't need for your everyday life, eating out daily, buying things just to say you have them which don't really enhance your life as frivolous.  On the other hand, I don't think the middle/working classes think of things like clothes for work, school, haircuts and manicures, going out on the town once in a while, tickets to performances and sports events as frivolous spending. 

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This^^^^^ very well stated.

[itiswhatitis]

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@reiki604 wrote:

If this were true the highest earners in the country would not be making the record profits that they are. The reason B&M stores are closing is that less expenditures result in higher profits for those for whom it is never enough. Internet commerce is more cost efficient.

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Excellent point about the greed factor.  The more you have ~ the more you want.

[Spurt]

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@KentuckyWoman wrote:

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@Poodlepet2 wrote:

Hi @KentuckyWoman! I think in some areas-especially those that suffer through winter, people will still want to get out-and if nothing else, go to the mall just to go out....

In the mean time, there is actually a show on Vice that is cataloging abandoned malls and the impacts their abandonment has had on the immediate areas they were in....that is shocking to me....I'm in shock however, by the number of stores we grew up with that are in danger of extinction.

I still remember the first December after the Crash, stores were slashing prices-but that wasn't a new thing because right after the Crash they started doing that in an effort to move merchandise.

A number of economists were saying that retail may never again be what it once was, because with everything in every store being discounted, there was a new mind set for shoppers: never pay full price-again....I think we became more savvy about wholesale prices and retail markup.

Poodlepet2

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@Poodlepet2  Nothing is forever.  In my area, we have lost two smallish malls in the past twelve years so I do think the times are changing.  I remember when I was a little girl, my mom and her sisiters would dress to the nines and go shopping in the downtown areas of Cincinnati, Lexington, and Louisville.  Those days are long gone and no doubt malls wlll follow suit.  I do love a good bargain but I also like to see it and touch it before I buy it at times.  But all too often the online deals are better.

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@KentuckyWoman

I think the stores that are offering order it online and pick it up at your nearest store are gaining in popularity ..... you save on shipping and you get it faster than waiting on a delivery by just ordering online......

[Spurt]

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@Katcat1 wrote:

@hoosieroriginal,  I guess I am somewhat guilty of spending but not big time.  I bought a printer finally but got a great deal at QVC.  i bought a few tops for spring and a pair of shoes and a new eyelash curler by Charolette Tilbury, oh and some succulent plants in pots from Pottery Barn (artificial) so all I have to do is dust.  But, I will not continue at this pace.  I have enough tops now and shoes.  I am not sure why so many places are closing stores and completely closing down (The Limited)  -- it's not pretty because more people are out of work.  i wonder what the percentage is for Unemployment.

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@Katcat1

Unemployement doesnt even give a true picture anymore....I know and have read where quite a few people in our area  who lost jobs because their company closed or company downsized and layed off people, but the only jobs they find are part-time ones, so they are working 2 jobs (in a couple cases 3) and still dont make the money nor do they have the benefits of a good full time job ---  so that may look good as far as the unemployment statistics that jobs are filled, but misleading as far the standard of living....Also some people are dropping out of the work force all together and just relying on assistance programs, or kids are moving back in with their parents, with grandkids in tow....while the parents support them.....

[Mominohio]

I won't say we are being more cautious with the money because of 2008, but more because our child is raised, and we have to look toward retirement. It is just a natural shift for us based on our age and stage in life. 

I think B&M stores are closing for a host of reasons. 

First, they built so many of them, often the same stores repeatedly in the same cities and towns, way too close together to weather the economic times and the shift to internet shopping.

Internet shopping, and more free shipping and returns. Simply put, why go to the store when you can have it shipped in for free, and return it for free (whether by mail or in the store).

The economy. We never really did make a great recovery from 2008.

Shift from consumerism. Many boomers have way more than they want or need, and many in younger and upcoming generations don't want even a fraction of the 'things' that older generations thought necessary or desirable. Less being desired, less being purchased, few stores needed!

[Spurt]

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@itiswhatitis wrote:

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@reiki604 wrote:

If this were true the highest earners in the country would not be making the record profits that they are. The reason B&M stores are closing is that less expenditures result in higher profits for those for whom it is never enough. Internet commerce is more cost efficient.

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Excellent point about the greed factor.  The more you have ~ the more you want.

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@itiswhatitis @reiki604

But people that want to make more money, just don't stack it up somewhere in a tower and count it like Scrooge in a Christmas Carol cartoon---to make more they invest either in their own company, or other companies, which leads to more jobs, employment, people spend money = profits, but sometimes taxes and regulations eat up funds for businesses too.........And they also give back to the community and charities too....

[itiswhatitis]

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@Spurt wrote:

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@itiswhatitis wrote:

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@reiki604 wrote:

If this were true the highest earners in the country would not be making the record profits that they are. The reason B&M stores are closing is that less expenditures result in higher profits for those for whom it is never enough. Internet commerce is more cost efficient.

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Excellent point about the greed factor.  The more you have ~ the more you want.

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@itiswhatitis @reiki604

But people that want to make more money, just don't stack it up somewhere, to make more they invest either in their own company, or other companies, which leads to more jobs, employment, people spend money = profits, but sometimes taxes and regulations eat up funds for businesses too..............

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Really?  All the time @Spurt?  Of course not.  Some do (those who are business minded).  Some don't.  There is a difference between being rich and wealthy as well.

[Spurt]

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@itiswhatitis wrote:

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@Spurt wrote:

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@itiswhatitis wrote:

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@reiki604 wrote:

If this were true the highest earners in the country would not be making the record profits that they are. The reason B&M stores are closing is that less expenditures result in higher profits for those for whom it is never enough. Internet commerce is more cost efficient.

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Excellent point about the greed factor.  The more you have ~ the more you want.

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@itiswhatitis @reiki604

But people that want to make more money, just don't stack it up somewhere, to make more they invest either in their own company, or other companies, which leads to more jobs, employment, people spend money = profits, but sometimes taxes and regulations eat up funds for businesses too..............

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Really?  All the time @Spurt?  Of course not.  Some do (those who are business minded).  Some don't.  There is a difference between being rich and wealthy as well.

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@itiswhatitis Even the ones that are selfish and buy all kinds of cars, houses, yachts, planes, all those pruchases are making it possible for that company that sells those products to make a profit!

[itiswhatitis]

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@Spurt wrote:

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@itiswhatitis wrote:

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@Spurt wrote:

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@itiswhatitis wrote:

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@reiki604 wrote:

If this were true the highest earners in the country would not be making the record profits that they are. The reason B&M stores are closing is that less expenditures result in higher profits for those for whom it is never enough. Internet commerce is more cost efficient.

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Excellent point about the greed factor.  The more you have ~ the more you want.

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@itiswhatitis @reiki604

But people that want to make more money, just don't stack it up somewhere, to make more they invest either in their own company, or other companies, which leads to more jobs, employment, people spend money = profits, but sometimes taxes and regulations eat up funds for businesses too..............

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Really?  All the time @Spurt?  Of course not.  Some do (those who are business minded).  Some don't.  There is a difference between being rich and wealthy as well.

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@itiswhatitis Even the ones that are selfish and buy all kinds of cars, houses, yachts, planes, all those pruchases are making it possible for that company that sells those products to make a profit!

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Sorry  @Spurt, I don't subscribe to this way of thinking.  They are the smallest group in our society and NO they are not entirely responsible for making sure we have jobs.  I have no doubt that wealthy folks give of themselves via their wealth in the way of endowments, and charitable giving.  10% of the population can not create jobs for the other 90%.

[Katcat1]

@hoosieroriginal  wrote:

Unemployement doesnt even give a true picture anymore....I know and have read where quite a few people in our area  who lost jobs because their company closed or company downsized and layed off people, but the only jobs they find are part-time ones, so they are working 2 jobs (in a couple cases 3) and still dont make the money nor do they have the benefits of a good full time job ---  so that may look good as far as the unemployment statistics that jobs are filled, but misleading as far the standard of living....Also some people are dropping out of the work force all together and just relying on assistance programs, or kids are moving back in with their parents, with grandkids in tow....while the parents support them.....

You are so right about not getting the true picture from unemployment.  If you unemployment benefits end and you still are unemployed you are no longer a statistic.  It is really sad and I hope the minimum wage goes up.  I know retailers, etc. are already raising prices in preparation of the wage increase.  I feel sorry for people trying to make ends meet.  If you don't have family you could end up on the street.  It should not be that way.