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Retail Apocalypse (2016-Present)

retail Amazon Sears Target store chains economy business middle America mall retailers

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#41
Alislaws

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Not sure if this is the best place, but:

 

The British government has put in some massive hikes to the rates paid by high street retailers over the last few years

 

 

2017 - Big rates hike threatens businesses "could finish off the high street":

https://www.theguard...mall-businesses

 

 

(In fairness, this is an increase based on the increase in land prices. Not a new idea by the Govt. to destroy businesses. Although land prices thing is because they refuse to do anything that might lower house prices, presumably because a lot of MPs are also landlords)

 

And now this year dozens of major retailers are starting to fail or posting losses. 

 

Now what I want to discuss is: "Why would the UK government want to destroy the high street even faster than it was being destroyed already"?

 

Or we can discuss: "How could anyone be this incompetent?" If you want to give them the benefit of the doubt and say they made a mistake.



#42
Yuli Ban

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"How could anyone be this incompetent?"

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And remember my friend, future events such as these will affect you in the future.


#43
Yuli Ban

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As US, UK 'retail apocalypse' deepens, EU chains grow nervous

The amount of US retail space lost in 2018 is expected to beat the record set last year. But the demise of Toys R Us, and the shutdown of a third of Sears stores, is down to more than the dominance of online shopping.
Nearly 11,000 stores β€” owned by traditional retailers like Sears, Walgreens and Gap β€” are anticipated to close before the end of the year, as the US sets a new record for lost retail space.
2018 will likely surpass last year's record 105 million square feet (9.8 million square meters) of stores lost, the commercial real estate services firm CoStar has predicted.
The mass closings phenomenon began in the early 2010s as a result of the growth of online shopping, but the sudden pace of the closures has been billed by the US media as a "retail apocalypse."
A similar story is unfolding in Britain, where the media regularly forecasts "the end of the High Street." Some 5,800 stores shut down in the UK in 2017, and around 10,000 are expected to close before the end of the year, according to the UK Centre for Retail Research.
Skeptics have long bemoaned that as the legacy retailers abandon their stores, many UK town centers have become cluttered by thrift stores (charity shops), bookmakers and "everything for a pound" stores. But now even the big discount chains are struggling. Just recently, Poundworld went into administration, which could potentially see its 335 stores shuttered.


And remember my friend, future events such as these will affect you in the future.


#44
tomasth

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Why are any of them expected to still exist is 10 years ? there must be a value that can be met by online stores.



#45
Dead Redshirt

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The Canadian arm of ToysRUs will live on, as a Canadian company (This was from a June article):

https://www.thestar....-in-canada.html


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My friends, love is better than anger. Hope is better than fear. Optimism is better than despair. So let us be loving, hopeful and optimistic. And we’ll change the world. - Jack Layton - 1950 - 2011

#46
Yuli Ban

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reboot_the_PC

TL;DR at the end!
It's a combination of crazy things. People blame Amazon, Wal-Mart, and other giants for its demise, but that's only part of the story. Toys 'R Us has also been in debt hell for the past several years.
It started in 2005 when three huge investors bought Toys 'R Us and took it private, hoping to turn it around and bring it back to its glory days from years earlier. Before the 2000s, Toys 'R Us was THE place for toys and electronics -- a lot of those who grew up in the 80s or 90s could probably remember getting their first Nintendo, Sega Genesis, or Turborgrafx-16 from the glass cases in the electronics aisle that kept them tantalizingly out of reach. You needed to bring up a 'ticket' to the counters to get your game or console back then.
Unfortunately, the debt that the deal was financed with was Godzilla sized. According to this article by Money CNN, they bought the company for $6.6 billion -- but the company also inherited $5.3 billion in debt. And the company was paying the interest on that debt ever since.
The company did sell a large amount of toys, but it had nothing else to offset any potential losses the way Amazon and Wal-Mart could with more than just toys to offer. And they could undercut Toys 'R Us in ways that the singular store couldn't keep up with. They were already feeling this from Wal-Mart (as did a lot of other retail outlets over time...).
They also fell behind the times because the money they could have used to revamp their stores and enhance their e-commerce ability was spent just trying to keep the company's head above debt. According to this from the NYT, they were paying $400 million in INTEREST per year. Yikes.
Fast forward to last September when they filed for Chapter 11 bankruptcy protection to restructure themselves to try and stay solvent while still doing business. Some stores might close, etc.. to try and generate the cash they need. They hoped they could prove how viable the business was during the holidays, but sales weren't as great as they hoped. Retail in general isn't doing super great, but it was especially important for Toys 'R Us to at least show it had some strength left during the all important holiday season.
Fast forward to this month, and it's all over. UK stores are already in the process of closing by the end of April. The Canadian stores may have a savior and actually remain open (they were also seen as the financially stronger segment of the business). But the US stores are likely going to be liquidated. This has already had a ripple effect on toy makers like Hasbro and Mattel as reflected in their stock prices. Toys 'R Us was responsible for around 17% of all toy sales in the US.
TL;DR: Saddled by monstrous debt and unable to keep up with the changes in the industry, most of Toys 'R Us will be liquidated after 70 some years in business.


And remember my friend, future events such as these will affect you in the future.


#47
wjfox

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UK high street sales fall for fifth month running

 

Fri 6 Jul 2018 06.01 BST

 

High street sales fell for the fifth month in a row in June, according to a survey that suggested bricks and mortar retailers have endured the worst first half year of trading in more than a decade.

UK high street sales fell 1.7% year-on-year in June, the fifth consecutive month of falling sales, according to data released by advisory firm BDO, which bases its finding on a survey of mostly medium-sized retail businesses. It is the first time in at least 12 years that in-store growth had not topped 1% in a single month for the first half of a calendar year.

Sophie Michael, the head of retail and wholesale at BDO, said: β€œThe bleak and crippling start to the year shows no sign of abating, with deep discounting set to eat into [profit] margins that are already being stretched paper-thin by poor sales and rising costs, including the much discussed issue of unfair business rates on high street retailers.”

 

MPs and retail bosses have called on the government to rethink business rates as rising costs, a shift to online shopping and low consumer confidence have already led to a series of high street failures with well established chains including House of Fraser, New Look, Marks & Spencer and Carpetright all closing dozens of shops.

Business leaders say rates, the tax levied on the value of a commercial property, unfairly discriminate in favour of online specialists such as Amazon, Asos and Ocado. But the chancellor warned in a letter published on Friday there would be no quick relief on business rates.

 

Read more: https://www.theguard...h-month-running

 

 

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Also tagged with one or more of these keywords: retail, Amazon, Sears, Target, store chains, economy, business, middle America, mall, retailers

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