What recovery? U.S. retail stores now in grim death spiral- Sears and J.C. Penny's

reply to post by 727Sky


I am surprised Kmart is still here. There is just no need for some stores.

reply to post by 727Sky


What's really sad is that both of these retailers needed to revisit their original model when the internet came along instead of aggressively chasing the brick and mortar retail crowd. Both of them got to be as big as they in great part because of their catalogues. They were truly pioneers in offering selection and being able to get it to your doorstep.

reply to post by Feltrick


In a healthy economy, those workers would move on to something else because something else would be available. This is far from a healthy economy. You can't keep propping up failing models just because everyone connected will be hurt when they go under. The company does not exist to provide jobs. If it doesn't make money, it has no reason to be at all.

When the government keeps trying to interfere to protect us all from pain, they just make things worse by making it harder for anyone else to get into the game and get a foothold. Sure the very large can survive, but if the very large don't need you, then when your piece of the pie goes under, there is nowhere else for you to go.

Sky: I priced Gibson and Fender guitars just the other day. IIRC you play as well. You may know that we (overseas) get search results from manufacturing outlets where these products are 'really' made. What I found was that a $5,000 U.S. spec model could be had (with a valid serial number) for 1/10th the price and $50 worth of geographic specific pick-ups and a $50 set-up job from a local luthier who does phenomenal work (WAY better than Gibson's Custom Shop IMVHO)

That's part of the issue too. People pay too damned much money for brand recognition ... and the brand no longer carries a guarantee of quality with it. I buy $5 silk ties that have no label on them. They're far better quality than the Salvatore Ferragamo's that are literally twenty times the price. ... and my family back home wonders why I 'appear' to have more money than they do.

Snarl
Sky: I priced Gibson and Fender guitars just the other day. IIRC you play as well. You may know that we (overseas) get search results from manufacturing outlets where these products are 'really' made. What I found was that a $5,000 U.S. spec model could be had (with a valid serial number) for 1/10th the price and $50 worth of geographic specific pick-ups and a $50 set-up job from a local luthier who does phenomenal work (WAY better than Gibson's Custom Shop IMVHO)

That's part of the issue too. People pay too damned much money for brand recognition ... and the brand no longer carries a guarantee of quality with it. I buy $5 silk ties that have no label on them. They're far better quality than the Salvatore Ferragamo's that are literally twenty times the price. ... and my family back home wonders why I 'appear' to have more money than they do.

Thanks for the reply and I assure you we are both on the same page.. I at times wish the farm was closer to modern civilization and then when I think about it... Naw I am very lucky and happy where we are.. Could use a few more Golf courses closer... But....

I am amazed at some of the prices we pay in the states for all kinds of stuff which is usually 1/10 the cost across almost any border depending on the item..

reply to post by ketsuko


I don't think we'll ever see the numbers of workers as we once had. This isn't due to the gov't or a slow/non-existent recovery, but due to advancements in automation and, of course, the internet. I realized that, instead of heading to the old auto parts store yesterday, I could just order new wiper blades online and they'll be at my door by Friday. Sure, I helped the economy by spending money, but the auto parts store lost a customer. Now, if I needed the blades immediately, I would have definitely gone to the store but, since I just wanted better wiper blades, I can wait the couple of days. Also, since the online store had lower overhead costs, the blades were cheaper w/free shipping.

The question is, "Did I just hinder this economy's recover?" Yes and no. I may be helping to put the local parts store out of business, but, at the same time, I am helping another business grow. In fact, I am spurring the economy/business to evolve and become better; yet I am also, potentially, causing a store to hire less workers. I am simultaneously helping and destroying the recovery!

Again, this economy has been evolving since the late 90's/early 2000's and we have yet seen the full damage it will do to the working class. There have been threads about 3D printers and "replicators." Scary future for manufacturers when a box could replace thousands of workers. Smart appliances with easily replaceable parts will make repairmen a thing of the past as an AC unit could sense a part that needs to be replaced, send a message to a facility and the part could arrive within a few days/hours. The appliances could be built so parts could be easily replaceable.

I suppose this post is off-topic, but we are becoming a society that is becoming more and more dependent upon automation and the internet. Hustler is going out of business since they've seen a drop in people buying their magazines since people can find anything they want online for free!

It's not about a sluggish recovery, but about an evolving recovery.

727Sky

January 21, 2014 – ECONOMY – Two of the largest retailers in America are steamrolling toward bankruptcy. Sears and J.C. Penney are both losing hundreds of millions of dollars each quarter, and both of them appear to be caught in the grip of a death spiral from which it will be impossible to escape.

theextinctionprotocol.wordpress.com...

There are several other sources on the net that are basically saying the same thing. The face of America is changing and you have to wonder what some of the shopping malls will look like if they both do go out of business.

Sears and JC Penny are certainly not indicators of the American economy one way or the other. Both are good examples of companies who have failed to adapt to a climate of internet shopping. JC Penny being the worst, going so far as to come up with the brilliant idea to quit putting out a sales ad on Sundays, which drive consumers to the malls in the first place.

Even in a completely healthy economy (and I do believe America's to be fairly well recovered, but not healthy) Sears and JC Penny would be struggling to survive. The days of the mega-malls will come to an end at some point. I have not been to our local mall in years. Have not bought anything from Sears or Pennys in years. Why? Have to go to the mall.

Sorry, I can get it online. I can get it online cheaper than Sears online. I can get free shipping. I can get it tax free in most cases.

That being said, a corporation going into bankruptcy in America doesn't mean much any more. happens all the time. It's an easy way for a corporation to eliminate debt and continue paying their executives billions in salary and bonuses.