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

People are getting smart and cutting out the middle man. Its easier to go straight to the wholesaler now days and get things factory direct, easier for wholesalers to setup shop online, its cheaper for them and they pass on the savings to us..

It may sucks because its going to cost jobs but if we can cut out the waste that comes with retail and get rid of these companies who overcharge to pay for their huge stores, massive employee force, ect things will actually turn out better in the end.

More tech jobs and higher paying jobs will be created getting rid of lower paying manual jobs or store type positions.

I know poeple are against places like walmart but walmart actually really helps you keep things you buy cheaper becuase they will make producers bring down the cost to where they have small margins just like walmart rather then selling something for 10X the price it cost them to produce.

The problem with these big box stores and mega corps that do give us good prices and still post billions in profits is they are not paying enough taxes or high enough wages. If they were to follow their own standards with pricing and pay their employees better then thing would be better. Instead of $20bil in profits if they took $10bil and put it into lowering prices of things and employees raises and bonus's then it would be more of benefit.

I really wish we could start establishing business's that the goal was to save poeple money but also pay the people who work there well and its not all about shareholder profits. Kind of like having walmart that is owned by the employees where every employee could be making $100k a year and you get even lower prices then you get now.

I say good riddance! Mega chains have monopolized the economy, commercialized our culture, and have made every town look the same. Just hope they don't get bailed out.

reply to post by surrealist


It's because many variables that play into and drive the economic system are crunching down and it turns out that the crunching effect is anything, but good. It is having diminishing effects on business and people alike. However, it may be useful, as we may be forced to re-adjust the entire economic system/monetary policy/currency standard, a newer system that accounts for errors in logic such as war being profitable, big business absolutely dominating local small business, etc etc.

Exciting, and uncertain times we live in.

The reason is relatively straightforward.
The people who voted for Obama, for the most part, have very little disposable income.
The vast majority of the people who did not vote for Obama have the greatest percentage of disposable income, and they correctly see that the future is going to be bleak until Obama is out of office, and so are conserving their wealth, or finding other ways of spending it.
Obama's policies are bankrupting the country, Obamacare has destroyed any job growth, and smart people understand that. The cost of health care forces companies to reduce their overhead, and employees, and the cycle continues.
By the way, this is not a partisan remark, as I detest both parties. It is merely a statement of fact. I don't believe in sugar-coating such a simple answer.

It’s simply cheaper online. Why would I pay $99 for a button up shirt at a shop called General Pants Co. when I can get a similar one from Asos for $30? Retail prices in Australia are truly disgusting! Or why would I pay around $10 for three pairs of socks when I can buy a dozen for $24 from eBay? For a company like Nike to make a pair of shoes - say Air Jordans - it costs them less than $10 including taxes and shippings, as they’re made in sweat shops and the materials really do not cost much at all. They then turn around and slap a $180-odd price tag on them because they have a tick on the side and come in a cardboard box with a few ticks on it. The mark ups retail puts on products is terrible. They cry foul yet fashion chain owners drive Ferraris and live in mansions by the beach. Same deal with car dealerships.

So, they reasons they’re going under is because their prices are inflated, their mark ups are ridiculous, no one has the money to lavish themselves with overpriced sh!t in this current climate and we can buy the exact same products for far less online without having to venture to a shop. There are some things you wouldn’t, or probably shouldn’t buy online, but in a shop. I hear many stories of people going into boutique clothes shops, trying things, taking a photo of them and then leaving to find them online far cheaper.

The latest silent killer in the US was the 2% increase in the payroll withholdings for social security. That's a 2% pay cut for every worker in the country. 2% off the net take home.

If the people in a capitalist country have their money confiscated by the govt through taxes, the entire fragile self-supporting economic eco-system collapses.

Part of the problem is "over saturation".

There are too many malls.... too many stores... to many gas stations.

Down the street from me there are 3 major grocery stores, next to them to them 3 major gas stations... next to them 5 major banks and 6 fast food chains.

Too much oversaturated commercialism.

Last 2 christmases all my shopping was done by internet. Cheaper, save gas, save hassle, no lines to stand in, no fighting for parking spaces.

Just peacefully shopping in my home. I love it.

I also have Amazon prime so my 2 day shipping is free.

Want a book? Need a shirt?... log in and order.

I asked for amazon gift cards for christmas. They last me all year for the stuff I want to buy.

Retail is changing. Best Buy? They've hardly been around for very long, maybe since the eighties. Radio Shack sells junk, for the most part. They had a spurt with the early computers such as the TRS-80, but blew it when they failed to innovate. Sears, once a mainstay of the working class, can't decide what it wants to be, though the tools are still top notch.

Target is an interesting case. They started out as the Dayton Hudson Corporation in Minneapolis, had some department stores and opened the first mall. They also started B.Dalton--Bookseller which had a great run in the eighties at more than 400 stores, but Barnes & Noble out classed them, bought the chain, and closed the last store a few years ago. Dayton Hudson managed to rebrand itself as Target. At least they survived.

Retail has to pay high rents for store fronts, staff the stores during business hours whether there are customers there or not, and still try to turn a profit. It's tough competing with online where you can have a backwater warehouse and a fancy online presence run by far fewer staff.

What do ANY of these stores sell that is really their own stuff? It's mostly re-branded stuff you can get anywhere. They are all unnecessary middlemen who buy from manufacturers, and mark up the price to sell at full retail.

Look at Sears. They used to be the equivalent of the World Wide Web. Their catalog was huge and carried everything anyone needed, especially if you were "out West." You could even by houses from Sears and have them delivered. They've really done a complete cycle. They went from what amounts to a (printed) online presence to a retail operation and now are returning to an online (web) presence, just like they started out.

I buy nearly everything online and it comes to my door in a few days. I rarely pay shipping, and when I do it's not as much as hopping in the car and spending half a day and a few gallons of gas to go to the mall and back. It's not cost effective. You want me to save gas or not? Choose.

Worried about all manufacturing going to China for cheap wages? Don't be. It's all coming back here and the Chinese are going to be in a world of hurt. Their wages are rising too fast.

Manufacturing is coming back here. Of course, it will be done by robots, which can do the work for about $3.50 an hour.

That's why they call this a "Jobless Recovery."

The robots are doing just fine. :-)

Lets not forget about the failing retail Chan paying the CEO and board members multi million dollar salaries and benefit packages.

It takes a lot of 99cents cheap China plastic toys to cover a $20 million dollar salary.

It's all in my intro thread.

We are becoming obsolete.

Unless you can innovate, or pay your way into adapting the soon to arrive "transhuman" upgrades, you'll be left in the dust.

The retail chains are losing to low-overhead online stores.

The humans will lose to low-consuming A.I. and transhumanists.

reply to post by surrealist


I couldn't even FIND a new oil pump for my 2008 vehicle in any of the local auto stores.
What's more is they said they could not even special order it for me.
So I bought a new pump on EBAY.

reply to post by surrealist


Those of us that are working are spending less, and in many cases earning less, and those who aren't (actual numbers are massive and growing) working can only spend based on their government checks etc. Even the rich are spending less.

The economy is on life support, and many are oblivious to it.

Enjoy oblivion while it lasts.

Lots of good posts.

I agree with most.

The internet is a game changer.

Wal-mart has 3 stores in my area. I don't shop at Wal-mart.

I do shop at Target or Meijer. Both stores are cleaner and offer comparable prices. Service is better too.

I shop local if possible otherwise I buy from the internet.

The Best Buy in my city is a dung heep. I can't stand going in there. The sales service sucks and the variety is a joke.

These stores all have a life span and I say goodbye to them all.

Originally posted by DaTroof
Capitalism necessitates growth. Where there isn't growth, there isn't investment. Where there isn't investment, cuts are made. The ones that make the largest cuts are those with the most to lose.

Please just stop repeating this BS! Capitalism does not necessitate growth and an economy can be vibrant and not grow. Monopolized debt based economies with fiat currency schemes necessitate money creation to project false growth it has nothing to do with capitalism...

People,...LISTEN UP ...

This bankruptsy began in the early 2000's.

Follow me please.

There was a 'push' to make money in the stock market in the early to mid 2000's. It was quoted as the best years ever. (for some)

And it was the last big bang for the American economy.


Everyone remembers the big spike in gas prices in 2007? It was exponential yes. Anyone living on minimum wage found they could no longer afford to drive to work. Let alone keep their insurance up. Those that made decent money found the gas bite took their remaining expendable cash, and worse, more than they could afford and still pay bills like mortgages.

This went on until 2008 when the double whammy hit. The stock market crash of 2008, and the The Foreclosure Fraud Timebomb - goes BOOM ! with GMAC literally evaporating trillions of dollars in individual wealth in this country overnight. (yes, I authored that thread and watched it unfold in real-time)

Suddenly, aside from 401k's for near-term retiree's shrinking to levels that ensured their need for employment for lots more years, and aside from millions of homeowners unable to get out of their homes as there were no buyers, and no funds to keep paying the bills, and aside from the investor lot barely able to keep from jumping off of buildings,... the stage was set.

Oil companies are now 'making sure' that supplies are limited to prop up retail futures on gas while the car companies desperatly attempt to make viable electric cars and desperatly try to get people to buy them when the people dont have any money or assets to borrow on to get them. Brick and morter stores are falling down while the online retailers cater to the customers that still want things, and yes, free shipping is a perc. Plus brick and morter stores are finding their prime real estate is no longer prime, and when the close their doors, nobody wants to lease or buy the vacant outlets. Even the US postal service is starting to fold into oblivion as the wagon wheel makers of days gone by, while UPS and FedEx cant put enough trucks on the road to cater to demand from the online retailers that know the USPS wont be around much longer. (now you know why Berkshire Hathaway started buying train freight conglomerates) Yes, the land-line phone companies, you know the ones that had to be de-monopolized because of their power, are now just companies with fake adverts trying to keep what persons refuse to change to fibre connected voip or handheld cellular technologies.


Folks,... This IS the new paradigm for America.

Change,... or go broke. Move fast, or become a third class citizen. Plan for retirement young,... or dont expect retire.


Is all lost? Absalutely not. Can I tell you what to do? Absalutely not.

But when the stock market crashed, I took a chance. I invested heavily into my 401k, and did pretty dern good recovering in short order. When the real estate market crashed, I took a chance and refi'd into a rediculously low rate for a shorter fixed term. Soon after gas decided to be overpriced, I took a chance. My wife and I both telecommute to work now. We have dropped our gas expense several fold per month. When stores started to be too expensive to buy from, We take a chance and buy from reputable online retailers at discount with free shipping. The only thing we go out for is recreation or dinners, or to buy food. (and the latter I foresee soon being readily available online too)

Am I bragging or rubbing in faces? All I can say to that is I am very sad to say, no. Way too many of my friends and family have suffered greatly. And I can do little to change that. And I am terrified for them in the future.

But it is important to suggest, quit living in the past, and look for opportunities to improve your future.

America IS going bankrupt, but just not as fast as the other countries.

God bless you all.

reply to post by tkwasny


This is just the surface. Wait until next year when obamacare goes into full effect and people see the increase in their taxes and have to pay for insurance (?), too (or the penalty).

I suspect one of the factors is the always advancing technology. Every year or two the technology jumps ahead, in the computer and chip industry. People have just stopped trying to keep up with the new technology, if it's beyond their budget. Another factor is competition from other countries, manufacturing, etc. Businesses simply can't say no to cheaper countries to manufacture in. I would predict that the next big economic battle will be this: Do we lower our standards to compete with other countries, or do they raise there standards to our level? I'm thinking in terms of workers rights, pay, benefits, working conditions, pollution concerns, food standards. Who do you think will win? Big Business!

When what you are selling is the same old items that everyone else is selling why
even go to those stores? Every time something specific is needed/wanted I have to
order online anyway because the local stores do not carry it within 100 miles. Anything
that can be picked up with two hands I order online now. The stores are not worth the
hassle and most of the time they have inadequate selection.

recent example:
Recently I went with my mother to look for a very large parrot cage. We have literally
warehouse sized pet stores locally filled to the brim with merchandise but, no large cages
that fit her bird. We went to local pet shops and they offered the same cages as the big box
pet stores. We go home and ordered her cage within 5 minutes online. The whole day was wasted
looking at objects that did not fill our need. You would think within these mammoth pet stores
there would be enough variety or the small stores would sell what the large stores do not to
compete.

Target -The upscale Wal-Mart
Kmart -The failing alternate Wal-Mart
Wal-Mart-
Carry about the same lacking merchandise

Sears-Old ladies clothing store with ok tools in the back for the old ladies husband to look at.

Local Greenhouses-Same plants as Wal-Mart or Lowes.

Pet Stores-See above

Electronics stores-Same electronics as Target, Wal-mart, Kmart, but, with annoying sales people that are more interested in selling bad warranties than letting you check out the products.

Local clothing stores-Same clothing styles as Wal-Mart. The only exception is an old lady that I have been buying from since I was a teenager. She will sew nearly anything you ask for a decent price. You can take a photo to her of what you want and she will measure you on the spot and make those clothes with your choice of fabrics. She is awesome.

People should consider not using Amazon.

Here in the UK they have been found out not paying taxes and treating their employees like sh1t.

An appalling company and not one that should be encouraged imo.

reply to post by cleverhans


Yeah, because raising unemployment will help, right? Right?