[Leanan]

Growth in online shopping, high energy costs, and overcapacity are among the factors being blamed for a recent spate of store closures.

$this->bbcode_second_pass_quote('', 'I')nstead of talking about their growth plans for 2006, many big-name retailers instead are announcing store closings.

It's a "bit unusual," said retail analyst Howard Davidowitz, chairman of Davidowitz & Associates, who attributed the trend to a "unique confluence of events."

[emersonbiggins]

At first, I was going to say that retailers like Mervyn's that are shuttering stores permanently aren't really indicative of anything other than years of bad marketing and retailing practices, but these very well could be the canaries in the coal mine of retailing. How else would these notoriously 'inferior' brands be expected to perform in the face of higher energy and consumer costs? Eventually, even this demand destruction won't be enough, and will be transferred to the core retailing brands: big box stores and department stores.

[AnniCat]

This is the bit in the article that jumped out at me. I think this is going to be the "comment of the year" as more and more business cut back.


$this->bbcode_second_pass_quote('', 'H')igh energy costs are also taking a toll.

"With energy costs escalating, it costs a lot more to run your business, especially if you operate a large fleet of stores," McIntosh said. "I think energy costs will hurt retailers' business in the first quarter."

[Leanan]

I think consumers have really cut back. With the rise in energy costs and the end of the refinancing ATM, they're tapped out.

Though I still haven't seen the rise in credit card minimum payments that was supposed to take effect. Just got my January bill, and the minimum payment is still 1%.

[SinisterBlueCat]

$this->bbcode_second_pass_quote('Leanan', 'I') think consumers have really cut back. With the rise in energy costs and the end of the refinancing ATM, they're tapped out.

[holmes]

$this->bbcode_second_pass_quote('SinisterBlueCat', '')$this->bbcode_second_pass_quote('Leanan', 'I') think consumers have really cut back. With the rise in energy costs and the end of the refinancing ATM, they're tapped out.

[Leanan]

I think the Christmas shopping season was a disappointment overall. People cut back on purchases last fall, and are keeping their wallets closed. If the price of gas goes down, they may start spending again...but I wouldn't count on it. Wages have been flat to negative when inflation is taken into account. People have been financing their lifestyles by borrowing against their homes and running up their credit cards. You can't do that forever, especially with interest rates rising.

[SinisterBlueCat]

$this->bbcode_second_pass_quote('holmes', '
')
there are sub regions within regions of zombification. these are the areas of concern when shtf as they will deny until the bitter end.

[PrairieMule]

I think online shopping is just going to gain momentum as the fuel costs go up and disposable income goes down. I consider myself lucky that I live, work, and shop within 3 miles of my home. Within 6 miles of my house is the biggest orgy of consumerism known as Frisco,Tx. It has anything or everything anyone could dream up available. It's also one of the worst areas in the country for traffic. For example last year, people lined up for over a mile in traffic when Ikea open up. It's going to be interesting to see that place dry up.

As for me personally, I am sick of the mall. The one materialistic weakness I have is high-end backpacking gear. My pack and bag I bought at a specialty store due to the fit, everything else-on the net. Last big purchase was a Mioxx water purifier. I was able to research, compare, watch a demo video, and purchase it at rei.com.

[Leanan]

I love online shopping myself, but I think it's just going to be a brief blip on historical radar. It's not a very efficient way to distribute goods. Companies are mostly eating the increased shipping costs right now, but they can't keep doing that forever.

[Wildwell]

$this->bbcode_second_pass_quote('Leanan', 'I') love online shopping myself, but I think it's just going to be a brief blip on historical radar. It's not a very efficient way to distribute goods. Companies are mostly eating the increased shipping costs right now, but they can't keep doing that forever.

[Leanan]

$this->bbcode_second_pass_quote('', ' ')You might as well do away with high street chains and out of town shopping, put it all in big warehouse somewhere (catalogue shop style) and ship it out via electric vans doing several drops at once.

[emersonbiggins]

$this->bbcode_second_pass_quote('', ' ')You might as well do away with high street chains and out of town shopping, put it all in big warehouse somewhere (catalogue shop style) and ship it out via electric vans doing several drops at once.

[Wildwell]

Ah don't worry, the big stores are bringing out a drip, commode and free computer so you can access their stores 24/7 stuck in a seat...you will never need to move...You'll make your money from pointless internet activities like: Porn, games, processing forms, clicking through ads to pretend someone is interested in plastic widgets...eventually, someone will come around and replace your brain with a Apple ibrain and the corporation managers will play paint ball 24/7 with naked nymphs from La Rochelle.

I take your point and agree...

[emersonbiggins]

$this->bbcode_second_pass_quote('Wildwell', 'A')h don't worry, the big stores are bringing out a drip, commode and free computer so you can access their stores 24/7 stuck in a seat...you will never need to move...You'll make your money from pointless internet activities like: Porn, games, processing forms, clicking through ads to pretend someone is interested in plastic widgets...eventually, someone will come around and replace your brain with a Apple ibrain and the corporation managers will play paint ball 24/7 with naked nymphs from La Rochelle.

I take your point and agree...

[holmes]

Blue Cat,
its the scale. PO is the scale! its easy to underestimate.

[Vexed]

I work in a big retail operation. Three things I have noticed since 2000:

1)The middle of the market has all but disappeared. Folks drop three thousand dollars without blinking, or look positively distressed over a $40.00 purchase. In the past, $200-600 purchases were very normal, now they are rare. Folks either have money or they don't.

2)The Internet is a very real challenge. American businesses are built on convenience. The Internet is convenience incarnate. You want something? You can order IT right now. I would argue that most American purchases are about the high of buying, and not necessarily related to a real need. The Internet provides that pleasure instantaneously in the comfort of one's own home.

3)High energy prices don't mean a damn to the average consumer, and are especially meaningless to the luxury vehicle and SUV-driving crowd. Gas hit $3.00plus here and it had absolutely no effect on our retail traffic. Sure, people complained; but, by and large, they didn't cut down their driving one iota. However, what high gas prices did effect was our staff. One coworker admitted: "I love this job but if gas goes to $4.00 a gallon, I am going to be spending a quarter of my wages on getting to and from work. That's just not justifiable."

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"The rung of a ladder was never meant to rest upon, but only to hold a man's foot long enough to enable him to put the other somewhat higher."
Thomas Huxley