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Signs of the beginning of the breakdown of JIT distribution.

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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby the48thronin » Sun 19 Apr 2009, 03:55:02

$this->bbcode_second_pass_quote('', 'I') have said for some time that J I T Distribution would begin to fail in todays depressed economy. Today I went grocery shopping and saw signs I am right.


http://marystruck.com/garden/?p=233

To see the entire 13 pictures I took today

http://s7.photobucket.com/albums/y297/sea-ya/produce/?albumview=slideshow
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby ReverseEngineer » Sun 19 Apr 2009, 04:24:34

$this->bbcode_second_pass_quote('the48thronin', '')$this->bbcode_second_pass_quote('', 'I') have said for some time that J I T Distribution would begin to fail in todays depressed economy. Today I went grocery shopping and saw signs I am right.


http://marystruck.com/garden/?p=233

To see the entire 13 pictures I took today

http://s7.photobucket.com/albums/y297/sea-ya/produce/?albumview=slideshow



The main competitor to Walmart up here, Fred Meyer is currently undergoing a "renovation". They have been taking sections out of the store and pushing around merchandise. It might be a disguise for having fewer goods to sell.

However, at both Walmart and Fred Meyer, about all the fundamental goods I buy still are filling the shelves. Namely all the food products, and they don't seem to be going up in price but rather down in price. I bought tonight 5 Marie Callendar Microwave dinners on sale for $2.59 each, normally they sell at around $4. You had to buy at least 5 to get the discount. I'm still able to get the imported Cheeses I like, although these have gone up in price. I bought also T-bone steaks on sale for $6.99/lb which is cheaper than I paid down in MO a few years ago. This of course could be a result of beef producers culling their herds to reduce their feed costs. Also, Australian Lamb still available though no Racks of Lamb lately which is the cut I buy. The Tomatoes and Avocados from Mexico and California are still plentiful and available at decent prices.

I'm wondering if the Alaska market is going to be different than the JIT market down in the lower 48, since we get all our good shipped directly by water? I'm wondering if we will get shipments longer or if we will go down first here? Are we going to be a Canary in the Coal Mine or a Last Survivor of the Food Trade?

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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby vtsnowedin » Sun 19 Apr 2009, 07:30:00

$this->bbcode_second_pass_quote('ReverseEngineer', '')$this->bbcode_second_pass_quote('the48thronin', '')$this->bbcode_second_pass_quote('', 'I') have said for some time that J I T Distribution would begin to fail in todays depressed economy. Today I went grocery shopping and saw signs I am right.


http://marystruck.com/garden/?p=233

To see the entire 13 pictures I took today

http://s7.photobucket.com/albums/y297/sea-ya/produce/?albumview=slideshow



The main competitor to Walmart up here, Fred Meyer is currently undergoing a "renovation". They have been taking sections out of the store and pushing around merchandise. It might be a disguise for having fewer goods to sell.

However, at both Walmart and Fred Meyer, about all the fundamental goods I buy still are filling the shelves. Namely all the food products, and they don't seem to be going up in price but rather down in price. I bought tonight 5 Marie Callendar Microwave dinners on sale for $2.59 each, normally they sell at around $4. You had to buy at least 5 to get the discount. I'm still able to get the imported Cheeses I like, although these have gone up in price. I bought also T-bone steaks on sale for $6.99/lb which is cheaper than I paid down in MO a few years ago. This of course could be a result of beef producers culling their herds to reduce their feed costs. Also, Australian Lamb still available though no Racks of Lamb lately which is the cut I buy. The Tomatoes and Avocados from Mexico and California are still plentiful and available at decent prices.

I'm wondering if the Alaska market is going to be different than the JIT market down in the lower 48, since we get all our good shipped directly by water? I'm wondering if we will get shipments longer or if we will go down first here? Are we going to be a Canary in the Coal Mine or a Last Survivor of the Food Trade?

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Your a canary for sure. The last survivor in the food chain is a farmer in Iowa. Corn in his east field wheat in the West forty. One barn full of hogs and the other full of chickens. Methane gas of the manure lagoon and he is good to go come war or melting ice caps. You on the other hand are one shipload away from starvation as there isn't enough moose and caribou in Sharaland to feed a quarter of the population. Sorry. :cry:
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby ReverseEngineer » Sun 19 Apr 2009, 12:03:54

$this->bbcode_second_pass_quote('vtsnowedin', '
')
Your a canary for sure. The last survivor in the food chain is a farmer in Iowa. Corn in his east field wheat in the West forty. One barn full of hogs and the other full of chickens. Methane gas of the manure lagoon and he is good to go come war or melting ice caps. You on the other hand are one shipload away from starvation as there isn't enough moose and caribou in Sharaland to feed a quarter of the population. Sorry. :cry:


Tweet, Tweet :-)

Actually, Iowa imports most of its food. That notwithstanding, the part of the Chain I was talking about is the JIT trucking portion (subject of the thread) which the lower 48 is totally dependent on but doesn't really apply up here because all the goods come by container ship, mostly loaded off rail cars. There are trucks involved in the loading of those rail cars, of course, however those are partially owned by the farmers themselves or the producers of the finished food products.

Then there is the fact that a lot of these goods come directly to Alaska from foreign countries, lamb from Australia, tomatoes from Mexico, etc. These goods should be being hit by the slowdown in Global Shipping as measured by the BDI, however so far they do not appear to be disappearing. I am sure they will eventually though, but I am not sure if they will disappear here first or from a supermarket in Iowa first.

Another factor to consider is that this is a military state, and most of the food brought up here actually goes to feed the military personnel who populate the state. The military of course has its own food acquisition and distribution abilities.

Insofar as there being insufficient Moose to feed the population up here, that is true, however the fisherie offshore is a big exporter of fish. I'd hazard the guess that our commercial fleet of fishing boats would do a pretty good job keeping the population fed for a while here. I personally won't starve for a while at least, but if stuff starts disappearing off the shelves here I will Tweet Tweet to let you all know :-)

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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby VMarcHart » Sun 19 Apr 2009, 12:21:22

$this->bbcode_second_pass_quote('the48thronin', '')$this->bbcode_second_pass_quote('', 'I') have said for some time that J I T Distribution would begin to fail in todays depressed economy. Today I went grocery shopping and saw signs I am right.

http://marystruck.com/garden/?p=233

To see the entire 13 pictures I took today
http://s7.photobucket.com/albums/y297/sea-ya/produce/?albumview=slideshow
Interesting, but is it an isolated event, or a documented spread-out pattern?
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby the48thronin » Sun 19 Apr 2009, 21:22:01

$this->bbcode_second_pass_quote('VMarcHart', 'I')nteresting, but is it an isolated event, or a documented spread-out pattern?



I have been seeing this in all sectors of the country. Wally world has cut almost in half the NUMBER OF DIFFERENT ITEMS they stock. This allows the D C to become almost a warehouse as the same footage is used for half as many different items.
The stores themselves are beginning to sprout a container farm near the back. The quickest cheapest warehouse they can find.

Over the last few months they removed a number of shelves, spread the rest out, and created a front back and each side aisle big enough to bring in whole containers displays. Over the last 3 visits to scattered stores, ( New Jersey, Iowa, and Ohio) I began to notice the placing of the aisle pallet material on shelves left vacant by delayed delivery of items.

Try it yourself in your town. Walk the local mega store of what ever brand ( they are all facing the same collapse) and see if you can pick out the signs.

Possibly;

1. A whole shelf with identical items say totes that would normally be nested in a small area, but spread out to fill voids in the store.

2. A depleted produce stand (they cant actually stack boxes of crackers among the cabbages).

Image

3. Articles way out of place for their location. As in a lot of identical boxes of mac and cheese meals in the edge of the toy section or among the dog food. ( I have seen both of these in the last 2 weeks).

Look at the displayed items on the shelf. Does there seem to be a lot of identical items only one deep? Does there seem to be only one of something you would expect to see several boxes of? Are there boxes of some other product filling the space behind the product showing?

These are all signs of dressing the shelves to avoid empty space. Something that a plan for a daily delivery of every item sold yesterday never envisioned having to do.

No we are not standing in line at the empty store waiting for the one load of bread that will arrive today YET! But the system is flawed and showing cracks, and in my opinion, will collapse even more.

The 20 percent decline in rail road cars here in the USA does not match the 35% decline in Asia. But it will sooner or later.

RE may think his ship born JIT is safer than a land bridge JIT, but the missing link is shipping, and that missing link is growing.

Ask yourself again why they absolutely refuse to put on that can of food where the product is from even though it has been a law for over a decade.

The give away is in the canned fruit. Those cardboard sleeves of 4 or 6 or 8 plastic cups with fruit inside. Look closely at the bottom of the cardboard those cups are nestled in for the words "product of".

I decided to begin documenting what I have been seeing, and what my friends on the trucking community have been seeing. You should check out your own community big box stores of what ever brand. They are all in the same boat.
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby ReverseEngineer » Sun 19 Apr 2009, 21:46:57

$this->bbcode_second_pass_quote('the48thronin', '
')RE may think his ship born JIT is safer than a land bridge JIT, but the missing link is shipping, and that missing link is growing.


Not accurate 48. I don't think its necessarily safer, I just am not sure which end of this business breaks down first and enough so as to make a significant dent in the produce available up here. At least compared to the photos you took, we are doing better than that so far. Overall you do not see this kind of disappearance of goods in our Walmart. YET. I'm not saying its not coming, I'm just observing that its not happening here FIRST. Which makes sense to me because we are less dependent on JIT, warehouse more stuff etc. When the warehouses run out of course, then you are dependent on the next container ship to arrive. I don't know how deep the warehousing is here, but I'd suspect a good 6 months inventory of most goods besides the extremely perishable ones.

Anyhow, as I said I'll be the Alaska Canary here and let you guys know when the shipping paradigm used here starts to fail. I should be able to report for at least one year after that. Beyond that, I'll be fishing quite often I am sure and have little time for the internet :-)

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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby timmac » Mon 20 Apr 2009, 00:57:48

This is really funny, here in Vegas we are not having these problems and we are as far away from farm fields as you can get, our grocery stores are full of food and produce, lots of food to be had 24/7 every where and at the buffets, I don't see this system coming apart any time soon, don't worry folks food will still be there tomorrow, next month and next year..

Its almost summer time and the OP said this system will be broke dick by summer, however still no problems here and every thing can still be had 24/7... :mrgreen:
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby the48thronin » Mon 20 Apr 2009, 08:53:22

$this->bbcode_second_pass_quote('timmac', 'T')his is really funny, here in Vegas we are not having these problems and we are as far away from farm fields as you can get, our grocery stores are full of food and produce, lots of food to be had 24/7 every where and at the buffets, I don't see this system coming apart any time soon, don't worry folks food will still be there tomorrow, next month and next year..

Its almost summer time and the OP said this system will be broke dick by summer, however still no problems here and every thing can still be had 24/7... :mrgreen:


And your casinos are going broke, selling their restaurants to Denney's etc...LOL NOPE nothing is changing in Lost wages Nevada.

My wife just "visited" your happy town, the one with the highest repossession rate for houses in the entire U S A. The one where the Trade show bookings are dropping like stones. The one with the construction loans desperately looking for renewals and where developers are trying to make happy while begging in the streets for pennies.

You might not have empty shelves there or anywhere, but the signs of J I T failure were at both grocery chains she visited while she was there last week.

Our conversations while she cruised the store prompted my pictorial.

Enjoy your cactus tea! Summer is coming and trucks and even more important mid sized trucking companies are dropping like flies near a pest strip.

Oh and to correct your caricaturization of my post back at the beginning.. I brought you the exact quote to read again

$this->bbcode_second_pass_quote('', 'T')his jit system is everywhere, from raw materials to finished distribution and it is all coming unraveled.. enjoy your summer...
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby VMarcHart » Mon 20 Apr 2009, 09:38:18

$this->bbcode_second_pass_quote('the48thronin', '')$this->bbcode_second_pass_quote('VMarcHart', 'I')nteresting, but is it an isolated event, or a documented spread-out pattern?
Try it yourself in your town. Walk the local mega store of what ever brand (they are all facing the same collapse) and see if you can pick out the signs.
I'm not a fan of mega stores, but I'll put that in my to-do list and report back.

Whether it's the JIT system, the producers, the packers, etc, I still haven't experienced walking out of a store disatisfied. I may not find bananas, but found berries, meaning, I wanted fruit, I found fruit. That said, it may not be there tomorrow.

Once I predicted we might walk to the store and find only 1-2 brands of peanut butter, versus the traditional 8-10. I was forseeing a consolidation of brands and companies. I don't know if that's exactly what's happening, but it seems the result is the same: we have to learn to live more humble lives.
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby alokin » Mon 20 Apr 2009, 19:16:40

What first runs out, at least here in Australia is always but always the Home brand. And I really do not like to pay more for a products which is the same in a fancy packet.
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby FloridaGirl » Tue 21 Apr 2009, 00:54:49

I passed a Walmart distribution center a couple of weeks ago and was struck by how much fuller the parking lot was with semi-trailers than I had ever noticed before. I passed by it again tonight and it was still just as full.
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby timmac » Tue 21 Apr 2009, 02:11:02

$this->bbcode_second_pass_quote('the48thronin', '')$this->bbcode_second_pass_quote('timmac', 'T')his is really funny, here in Vegas we are not having these problems and we are as far away from farm fields as you can get, our grocery stores are full of food and produce, lots of food to be had 24/7 every where and at the buffets, I don't see this system coming apart any time soon, don't worry folks food will still be there tomorrow, next month and next year..

Its almost summer time and the OP said this system will be broke dick by summer, however still no problems here and every thing can still be had 24/7... :mrgreen:


And your casinos are going broke, selling their restaurants to Denney's etc...LOL NOPE nothing is changing in Lost wages Nevada.

My wife just "visited" your happy town, the one with the highest repossession rate for houses in the entire U S A. The one where the Trade show bookings are dropping like stones. The one with the construction loans desperately looking for renewals and where developers are trying to make happy while begging in the streets for pennies.

You might not have empty shelves there or anywhere, but the signs of J I T failure were at both grocery chains she visited while she was there last week.

Our conversations while she cruised the store prompted my pictorial.

Enjoy your cactus tea! Summer is coming and trucks and even more important mid sized trucking companies are dropping like flies near a pest strip.

Oh and to correct your caricaturization of my post back at the beginning.. I brought you the exact quote to read again

$this->bbcode_second_pass_quote('', 'T')his jit system is everywhere, from raw materials to finished distribution and it is all coming unraveled.. enjoy your summer...





And what grocery stores was that here in Vegas, if she was in the new development areas that never took off than it would look bare because they are pulling out because of slow business and some Albertsons are also leaving, but many new Fresh and Easy grocery stores are popping up every where, Smiths has food on all shelves nothing is short, Walmart grocery stores are full, in fact Walmart box store and Sam's Club is overfowing with products, my cleaning product stores that sells my supplies needed for my business is always full, never short, I just don't see the same problems you are or your wife, do you need new spec's. [eye glasses]

As to Vegas other problems yes, its getting pretty bad here on the casino business end but Harrah's Casino Group has now reported a profit over 10 million for last qtr and others have had some gain as well, Station Casino's have filled for bankruptcy now there books are looking better, but if you need something anything at all its still here 24/7.

The trucking business has been hit like many other companies around America but its not going away and the strong ones will survive and be bigger and better when the other weak ones close down, there is still to much going on and folks still need food and supplies and there is still lots of $$$ being spent and many trucks are still on the road, remember 90% are still employed, only 10% unemployed, billions are still being loaned out and being spent every day, farmers have crops in the fields, products are still being made and now Bank of America has reported a huge profit as well.

And on the other note my business is still growing and I am doing better this year than any of the other of the 10 years in the past.

I just don't see the problems with shipping right now, it has to get a whole lot worse before the shelves are dry.

Yes Denny's, McDonald's, Taco Bell and many other fast foods have been inside Casino's for over 20 years now, nothing new here..

My 2 cents.. :mrgreen:
Last edited by timmac on Tue 21 Apr 2009, 03:13:01, edited 1 time in total.
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby timmac » Tue 21 Apr 2009, 03:06:18

$this->bbcode_second_pass_quote('the48thronin', '')$this->bbcode_second_pass_quote('Newfie', 'F')rom Progressive Railroad


3/24/2009 Intermodal
New York/New Jersey port authority's cargo volumes flat-line in '08

For the first time in 15 years, annual cargo volume remained flat at the Port Authority of New York and New Jersey (PANYNJ).

In 2008, the authority handled 5.26 million 20-foot equivalent units (TEUs) compared with 5.3 million TEUs in 2007. PANYNJ officials expect volumes to decrease throughout 2009 as "the full effect of the economic downturn is realized."

However, the authority expects cargo growth at the port over the long term and is making investments to expand or upgrade ExpressRail and other infrastructure.

For more 2008 port statistics, as well as details on how the authority is working to accommodate future growth, follow this link.

http://www.panynj.gov/AboutthePortAutho ... hp?id=1212


The top five containerized import commodities by volume were furniture, women’s and infantware, beer and ale, menswear and plasticware. same source






5.26 million [TEUs] is still a lot of products that needs to be trucked, a whole lot just from New York/New Jersey ports, than there's Long Beach, Seattle, Gulf States, etc, etc, just a little slow down but lots of trucking is still needed, lots...
:mrgreen:
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby uNkNowN ElEmEnt » Tue 21 Apr 2009, 03:21:09

I went out and looked for signs like you said and here (in western Canada) I don't really see signs as drastic as you report.

However, I did notice that the shelves aren't stocked as deeply as they used to be of lots of canned and tinned food. As well, while the shelves weren't as bare as your pictures, they don't have heaps of produce lately either. That will probably change as this region produces lots of food and that might come into some stores.

The Safeway here though (which predominantly deals in imported food) has prices going up. I asked the produce guy if I could buy a 50 lb box of potatoes (since that is apparently how it comes in) and if I could get a deal on it. He said no. I could buy one but there would be no deal so it would still cost me 1.09 a lb. for 50 lbs which is 54.50 for 50 lbs. I then went to a cheaper store and found 25 lbs for 7.99.

I also found that bread at the cheaper store was more expensive at almost 4.00 a loaf, when at the Safeway (they have their own bakery) bread is about 2.50 (which went up a good .60-.70$ from when the price of gas went up) but the price of the bread has not come back down, even though they bake this here (though likely from an imported mix).
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby Newfie » Wed 22 Apr 2009, 07:28:08

I too fail to see signs of impending doom when I go out the stores.

Yet, if the numbers are to be believed something is happening.

http://www.progressiverailroading.com/p ... p?id=20143

Note this is a cumulative tally so it is less reactive as the year goes on. Maybe someone with more time could sit down and crunch the raw numbers to get a more meaningful analysis.

None-the-less, it seems to indicate that a whole lot of stuff is NOT being moved, and sooner or later that has to become visible on the store shelves. Although I admit I thought we would have seen it by now.

The one thing I do see is is that the car lots at rail heads and ship yards are nearly empty and that explains at least some of the drop off in rail shipping.
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby IslandCrow » Wed 22 Apr 2009, 09:50:25

It is not the end of JIT, but it puts it under a lot of strain. So I will guess that there will be empty space on some shelves, but not a collapse just yet:

$this->bbcode_second_pass_quote('', 'T')he prospects for world trade are even gloomier, with the IMF now forecasting world trade volumes to decline by 11% in 2009, and barely grow at all in 2010.

http://news.bbc.co.uk/2/hi/business/8011907.stm

In my neck of the woods, the only food store had empty space over winter, but then they are catering for around 900 people. Today they were starting to stock up for the summer - at mid-summer there might be 10 000 people here! I can see no signs yet of JIT breaking down here.

The test, for this local area, will be how things hold up over the holiday season. Company bookings are down, but private bookings are up (local holidays instead of trips abroad), but I have no idea how these two trends will affect the overall balance, and profitablity of the local store, which like a lot of the economy on this island depends on the summer trade to make a profit.
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby TWilliam » Wed 22 Apr 2009, 11:03:33

Sometimes you really have to be paying attention to notice the signs of shortage. If you have a particularly savvy store manager, there are any number of things that can be done to minimize visible indications of lower inventory. A little more spacing between racks (because some have been removed). Shallower shelving in the aisles. Larger quantities of any single item coupled with less variety. Fewer tiers. False bottoms in open-top refrigerators, produce racks and such. 'Spreading' rather than 'stacking' of shelved items. Fewer impulse purchase displays in aisles, or alternatively more of a single impulse item.

I've noted all of these little 'tricks of the trade' in local stores over the last several months, but I doubt many people notice them if they're not looking for them.
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby vision-master » Wed 22 Apr 2009, 11:14:23

Aldi's food stock is down.

Yeah, they have ways of making things look normal.

The average consumer wouldn't notice tho. :oops:
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Re: Signs of the beginning of the breakdown of JIT distribution.

Unread postby Byron100 » Wed 22 Apr 2009, 11:30:15

$this->bbcode_second_pass_quote('TWilliam', 'S')ometimes you really have to be paying attention to notice the signs of shortage. If you have a particularly savvy store manager, there are any number of things that can be done to minimize visible indications of lower inventory. A little more spacing between racks (because some have been removed). Shallower shelving in the aisles. Larger quantities of any single item coupled with less variety. Fewer tiers. False bottoms in open-top refrigerators, produce racks and such. 'Spreading' rather than 'stacking' of shelved items. Fewer impulse purchase displays in aisles, or alternatively more of a single impulse item.

I've noted all of these little 'tricks of the trade' in local stores over the last several months, but I doubt many people notice them if they're not looking for them.


I agree. Having worked in retail in my younger years, I'm quite familiar with the tricks of the trade, making the store look fuller than it really is, etc. While it's been a couple months since I've visited Wally-Mart, I've noticed this trend in the big-box home improvement stores. In the old days, I used to complain of the aisles being blocked by those obnoxious "temptation" displays, but no longer. The aisles are blissfully unobstructed, and there are more and more gaps on the shelves. I see a lot of items being out of stock as well. Still plenty of stuff to be had of course, but then again, the decline has just begun.

But what stands out the most is how EMPTY the these places are, even on the weekends. I used to complain endlessly how long I had to wait in checkout lines...not anymore! [smilie=headbang.gif] Sometimes I honestly think there are more employees than customers in the store. Getting assistance certainly isn't a problem like it used to be, that's for sure. :-D

And has anyone been to a Best Buy lately? What a waste of space that place is...it's got to be one of the most moronic examples of big-box retail ever to be birthed in this country. Looking forward to seeing that place go t*ts up, that's for sure. :twisted: And malls, what are those? (j/k) Haven't really cared for those overpriced collections of silly clothes shops in quite some time....LOL.
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