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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?"

maxresdefault.jpg


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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 — owned by traditional retailers like Sears, Walgreens and Gap — 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: “The 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

 

 

2mxMvoB.jpg


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#48
Yuli Ban

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This is it, boys. Probably second only to Walmart in terms of "apocalyptic happenings". But Walmart actually had the common sense to digitize.

 

125-year-old Sears to file for bankruptcy: report

Sears arranges emergency financing for a potential bankruptcy

Sears may be days away from bankruptcy

Sears Hires Advisers to Prepare Bankruptcy Filing


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


#49
Yuli Ban

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And it happened.
 

Sears, the store that changed America, declares bankruptcy

Sears, the once-dominant retail chain that changed how Americans shopped and lived, has filed for bankruptcy.
The 132-year-old company has been struggling for several years and is drowning in debt. The final straw was a $134 million debt payment due Monday that it could not afford.
Sears Holdings (SHLD), the parent company of Sears and Kmart, is among dozens of prominent retailers to declare bankruptcy in the era of Amazon (AMZN).
The filing in federal bankruptcy court in New York came in the early hours of Monday morning. The company issued a statement saying it intends to stay in business, keeping open stores that are profitable, along with the Sears and Kmart websites.
 
As of the filing, about 700 stores remained open and the company employed 68,000 workers. That's down from 1,000 stores with 89,000 employees that it had as recently as February.


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


#50
bgates276

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I'm a bit confused. I thought declaring bankruptcy meant relinquishing all of your assets and starting over. How exactly do they intend to stay in business if this was the case? Is there some loophole I am unaware of? 



#51
rennerpetey

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On the flip-side:

Walmart's strategy to solve the Amazon puzzle is working

 

Walmart is in the biggest fight of its 68-year history.

 
To stave off Amazon and remain the world's biggest retailer, Walmart is stepping up its grocery game and buying trendy digital brands. The company is redesigning its stores and building up its online assets.
"We're changing. We're adapting. We continue to transform," chief executive Doug McMillon said at Walmart's annual investor gathering on Tuesday.
Walmart (WMT) is marching forward with a two-track strategy designed for different customer segments: It's offering cheaper and more convenient ways to buy groceries for its low-and-middle income base, while acquiring high-end brands— including Bonobos and Modcloth— to draw wealthier shoppers long wary of Walmart's image.
The plan is working: Grocery sales growth is at a nine-year high. Walmart's online sales are expected to grow 40% this year, and the company said Tuesday that digital growth will expand by 35% in 2019.

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John Lennon dares you to make sense of this

Spoiler

#52
Sciencerocks

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Toys 'R' Us owners will hand out $20 million severance to employees

Last edited Tue Nov 20, 2018, 09:13 AM - Edit history (1)
Source: CNN Business.

Two of the former owners of Toys "R" Us have agreed to pay $20 million to help laid-off employees.

Bain Capital and KKR, private equity firms that owned part of the toy retailer, set up a severance fund to pay former workers who lost their jobs when the company closed its stores.

The third owner, real estate firm Vornado, did not join the fund, and did not immediately respond to request for comment.

Toys "R" Us filed for bankruptcy a year ago with plans to stay in business. But in March the company's creditors forced it to go out out of business, and the 31,000 remaining employees did not get severance payments.

Read more: https://www.cnn.com/...r-us-severance-

 

fund/?fbclid=IwAR3EUGMX0wFlGd3ScH4pPEb1QJARqojaXHyWJugFTw7c_Ylf1OcGTJ7BmC0


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#53
Erowind

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Gamestop is doomed. Not this year, but they'd be very lucky to survive another ten. Streaming will destroy them. 

https://seekingalpha...d-digital-sales

 

Digital Distribution yes, streaming no. In other countries with better internet infrastructure like Korea I can see streaming taking off in the next decade. But there is still such a large portion of the US population that only has access to monopolized DSL on decades old copper lines. Even in places within the US where there is better infrastructure ISPs throttle connections constantly. I pay for a 70mb connection, at peak hours that dips to a measly 1mb. Streaming in the US is still decades out unless there is some major shift in the political climate that reclassifies internet access into the same category water and electricity currently sit alongside some long overdue monopoly busting.


Current status: slaving away for the math gods of Pythagoras VII.


#54
caltrek

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On Black Friday more U.S. shoppers chose the computer over the mall

 

https://www.rawstory...-computer-mall/

 

Introduction:

 

(Raw Story) The Thanksgiving Day and Black Friday kickoff of the U.S. holiday shopping season showed the increasing preference for online purchases, as more Americans opted to stay home and use their smartphones while sales and traffic at brick-and-mortar stores declined.

 

The ongoing shift to online shopping has forced retailers across the country to invest heavily in boosting their e-commerce businesses, and also highlights the impact of early holiday promotions and year-round deals on consumer spending.

 

The weekend also redefined the importance of Black Friday. For the past few years, Black Friday was believed to be waning in importance, but it is now turning into a day when shoppers do not necessarily flock to stores but spend heavily online.

 

Bill Park, a partner at Deloitte & Touche LP, said online sales are starting to complement in-store shopping over the weekend, and for shoppers and retailers the two platforms are starting to converge.

 

This is happening more and more as retailers like Walmart Inc and Amazon.com Inc sell both online and through stores, making winning the transaction more important than where it occurs, retail consultants and analysts said.


The principles of justice define an appropriate path between dogmatism and intolerance on the one side, and a reductionism which regards religion and morality as mere preferences on the other.   - John Rawls


#55
caltrek

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Sears chairman Eddie Lampert offers to buy Sears out of bankruptcy, including 500 stores

 

https://www.usatoday...fer/2224500002/

 

Introduction:

 

(USA Today) The chairman and largest investor in Sears Holdings is offering to buy the retailer out of bankruptcy — including 500 of its remaining stores — in what may amount to the chain's last hope to survive its precipitous decline.

 

Sears chairman and hedge fund investor Eddie Lampert, who was also CEO until the retailer's October bankruptcy filing, disclosed the offer Thursday.

 

"Sears is an iconic fixture in American retail and we continue to believe in the company’s immense potential to evolve and operate profitably as a going concern with a new capitalization and organizational structure," Lampert said in a letter.

 

"Our proposed business plan envisages significant strategic initiatives and investments in a rightsized network of large format and small retail stores, digital assets and interdependent operating businesses."

 

Lampert said the acquisition would keep 50,000 Sears employees working.


The principles of justice define an appropriate path between dogmatism and intolerance on the one side, and a reductionism which regards religion and morality as mere preferences on the other.   - John Rawls


#56
Sciencerocks

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Reuters Top News
‏Verified account @Reuters
1m1 minute ago

Sears picks liquidator should rescue talks fall through: sources https://reut.rs/2CTjG38



#57
caltrek

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Sears Staves Off Liquidation, Stores to Remain Open

 

https://www.courthou...to-remain-open/

 

Introduction:

NEW YORK (AP) — Sears has won a reprieve in a desperate attempt to stave off its own demise. The company’s largest shareholder and chairman, Eddie Lampert, won a bankruptcy auction in New York, according to a source familiar with negotiations.

 

The person agreed to speak on condition of anonymity because he or she was not authorized to discuss the negotiation publicly.

 

Lampert had upped his bid to more than $5 billion in recent days.

 

Lampert, who steered the company into bankruptcy protection, may be able to keep the roughly 400 remaining Sears stores open, which would mean tens of thousands of jobs would be saved, at least for now.

 

Whether Sears, founded 132 years ago, can survive in the era of Amazon remains questionable.

Sears.jpg?resize=342%2C257

This Sears store in Overland Park, Kan., closed in the summer of 2017.

(AP file photo/Charlie Riedel, File)


The principles of justice define an appropriate path between dogmatism and intolerance on the one side, and a reductionism which regards religion and morality as mere preferences on the other.   - John Rawls


#58
wjfox

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City centres 'could become ghost towns'
 
City centres are in danger of becoming ghost towns as shopping habits change, a committee of MPs has warned.
 
To combat this, the government should "level the playing field" for High Street retailers by raising taxes on online giants such as Amazon, it said.
 
The MPs also called for lower business rates and more regeneration in town centres.
 
The government said it was investing to ensure High Streets "adapt and thrive for generations".
 
A fifth of UK retail sales now occur online with that proportion likely to grow, the Housing, Communities and Local Government Committee said.
 


#59
starspawn0

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Retail apocalypse? JCPenney, Payless, LifeWay announce 3,000+ combined store closures

“In the post-digital era, only the strong will survive. Darwin would love this,” said one retail analyst.

https://www.nbcnews....d-store-n988756
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#60
tomasth

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Its like expecting to find video rental store. It didn't exist in 1900 or today ; businesses have their temporal niche.







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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