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America’s ‘Retail Apocalypse’ Is Really Just Beginning

bloomberg.com

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Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#21

Post by bunderbunder »

ewheeler wrote: post #13

The 'Retail jobs growth by state' chart in this article (approx 2/3 down the page) is lovely: one square line chart for each US state, positioned roughly according to geography, all equal in size. I find it very easy to grok compared to choropleth maps and similar charts that attempt to stay true to geography. Unlike other non-map presentations of US state data, this layout preserves ability to spot regional similari…

The general idea of using lots of small visualizations broken up across some dimension like that is called "small multiples".

I agree, the geographic arrangement is a really nice innovation on the idea.

Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#22

Post by mjevans »

Retail jobs are already a dead end and this news doesn't make things any brighter. The structure of having space that many people go to during the day with ample parking seems sound enough...

Is there some kind of job that actually needs to be done that wouldn't better be filled by automation? If not, maybe light automation (local 3D printing and final assembly) could move to such spaces.

Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#23

Post by ChuckMcM »

hprotagonist wrote: post #2

in general, it is difficult for me to separate a reasonable concern borne of the knowledge that a thriving economy is important from a sense that, so far, the big retail chains that are closing many locations sell junk that i both do not want and think is largely superfluous anyway. Anyone got a reasonable way to synthesize those competing thoughts?

It is general market dynamics that at times stores will have things that don't sell. Whether or not "you" find them useful or not is a different story, sometimes a store will be doing well selling things you might find useless, simply because you are not the target market.

The confluence of events that the article alludes to are that many retail stores went through a period of consolidation and buyout through leveraged debt. As anyone with big credit card bills understands, it sucks when you're spending a huge chunk of your income just to pay interest on your credit cards. (or in these stores cases their junk bonds).

This massive debt load is forcing changes faster than what one might see organically and as a result there is a lot of turmoil in the retail business.

Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#24

Post by sytelus »

Retail is the prime example of middleman business. The middleman businesses don't produce anything by themselves and attempt to extract profits via information asymmetry and/or some value adds such as geographically closer availability. Eventually both of these should be done by machines. Throughout the history technology has been killing off middleman businesses such as travel agents, insurance agents, stock brokers and so on. Retail is not an exception and I would expect most middleman businesses to be extinct eventually.

Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#25

Post by wlesieutre »

ewheeler wrote: post #13

The 'Retail jobs growth by state' chart in this article (approx 2/3 down the page) is lovely: one square line chart for each US state, positioned roughly according to geography, all equal in size. I find it very easy to grok compared to choropleth maps and similar charts that attempt to stay true to geography. Unlike other non-map presentations of US state data, this layout preserves ability to spot regional similari…

Are we seeing different charts? Mine is sorted by the percent change (over 2007 to 2017), not geography. Has Rhode Island at the top left, Alaska on middle-right, etc.

Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#26

Post by frk1206 »

Analemma_ wrote: post #17

Make sure you read the article and don't just come here to comment: there's an important point that this isn't (just) due to Amazon and overbuilding, but because a lot of these troubled chains-- even the ones that are still profitable!-- are loaded up on debt from leveraged private equity buyouts. Once again, PE accomplishes nothing except stripping healthy companies to sell their organs.

Am curious how the profitability part is calculated. Seems like annuity payments or interest/payback on the loan is ignored? If these chains were profitable after counting in debt, there would be no debt - right?

Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#27

Post by lotsofpulp »

sandworm101 wrote: post #10
hprotagonist wrote: post #2

in general, it is difficult for me to separate a reasonable concern borne of the knowledge that a thriving economy is important from a sense that, so far, the big retail chains that are closing many locations sell junk that i both do not want and think is largely superfluous anyway. Anyone got a reasonable way to synthesize those competing thoughts?

>>> junk that i both do not want and think is largely superfluous anyway. I'm reminded of an article I read last year about parents buying presents for kids at Christmas. In the 90s it was easy. The kid wanted a thing. A gaming device, a dress, or a car... there was an object that the kid wanted to own. That object was sold at a store. But today's kids don't want things. They have the iPhone. What they want is 50,000…

I think they still want things, just happen to be more "experience" related, which are more expensive. International travel, expensive restaurants, "off the beaten" path type adventures, performances etc are all in vogue, and all are good for displaying status on Snapchat and Facebook. A $50 toy isn't good for that, and the younger kids probably find more enjoyment in using phones or with video games.

Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#28

Post by brango »

sytelus wrote: post #24

Retail is the prime example of middleman business. The middleman businesses don't produce anything by themselves and attempt to extract profits via information asymmetry and/or some value adds such as geographically closer availability. Eventually both of these should be done by machines. Throughout the history technology has been killing off middleman businesses such as travel agents, insurance agents, stock brokers…

They're aggregators. There's value in going to a single shop to buy everything instead of going to 200 individual suppliers for your weekly shopping.

Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#29

Post by PatientTrades »

Even with high consumer confidence, retail is dying. The middle class no longer has the same spending habits as it did for the past 60 years. Its fair to say that retail malls and outlets as we know them might not exist in the next 15-20 years. Why would somebody walk into a Macys and buy and item when you can order it of Amazon and have it delivered the same day for %20 cheaper?

Re: America’s ‘Retail Apocalypse’ Is Really Just Beginning

#30

Post by jacalata »

thefalcon wrote: post #11
sandworm101 wrote: post #10

Earlier quoted context omitted.

>>> junk that i both do not want and think is largely superfluous anyway. I'm reminded of an article I read last year about parents buying presents for kids at Christmas. In the 90s it was easy. The kid wanted a thing. A gaming device, a dress, or a car... there was an object that the kid wanted to own. That object was sold at a store. But today's kids don't want things. They have the iPhone. What they want is 50,000…

Thankfully 50,000 likes on Facebook is cheaper than the object at the store. (Only somewhat kidding. Don't buy your kids Facebook Likes.)

My kids, no, but that will be a hilarious birthday present for my brother.
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