Skip to comments.U.S. Retail Economic Death Rattle Grows Louder
Posted on 05/26/2014 10:54:28 AM PDT by blam
May 26, 2014 - 06:47 AM
By: James Quinn
The definition of death rattle is a sound often produced by someone who is near death when fluids such as saliva and bronchial secretions accumulate in the throat and upper chest. The person cant swallow and emits a deepening wheezing sound as they gasp for breath. This can go on for two or three days before death relieves them of their misery. The American retail industry is emitting an unmistakable wheezing sound as a long slow painful death approaches.
It was exactly four months ago when I wrote THE RETAIL DEATH RATTLE. Here are a few terse anecdotes from that article:
The absolute collapse in retail visitor counts is the warning siren that this country is about to collide with the reality Americans have run out of time, money, jobs, and illusions. The exponential growth model, built upon a never ending flow of consumer credit and an endless supply of cheap fuel, has reached its limit of growth. The titans of Wall Street and their puppets in Washington D.C. have wrung every drop of faux wealth from the dying middle class. There are nothing left but withering carcasses and bleached bones.
Once the Wall Street created fraud collapsed and the waves of delusion subsided, retailers have been revealed to be swimming naked. Their relentless expansion, based on exponential growth, cannibalized itself, new store construction ground to a halt, sales and profits have declined, and the inevitable closing of thousands of stores has begun.
The implications of this long and winding road to ruin are far reaching. Store closings so far have only been a ripple compared to the tsunami coming to right size the industry for a future of declining spending. Over the next five to ten
(Excerpt) Read more at marketoracle.co.uk ...
If theres one indicator of the state of the global economy its consumer purchasing on the retail level. And if theres one retail company to watch as a prelude to what comes next its always been Walmart. Known for low prices, low wages, and multi-billion dollar profits, the worlds largest retailer is struggling.
Not as mention of the jeg-eared POS at the helm over the last six years of this economic meltdown. Obamanomics at work, just as planned...
More and more people going to Galt’s Gulch?
Or maybe everyone is just shifting to shopping online. Duh.
Things aren’t going very well; that’s for sure. But this article contains a bit too much hyperbole for my liking.
Before long there will be no more private enterprise. We will all have to shop at government stores.
No more and more people are buying from Communist China.
Many stores closing in my area while LOTS of Liquor Stores and Thrift Stores are opening.
“Retail CEOs are not the sharpest tools in the shed. They were born on third base and thought they hit a triple.”
From personal experience, I have to agree - and not only in retail.
Wall Street will not allow an economic collapse to occur as long as Obama remains in office. I’ve been fully-invested since I made this realization and have profited handsomely.
I’ll start taking money off the table as the 2016 election approaches.
Wall Street will not allow an economic collapse to occur as long as Obama remains in office.
But it will happen in time to declare a national emergency ,declare martial, and suspend the 2016 elections.
That's six percent of sales, which is actually a commonly cited figure. The two things people buy most, food and fuel, can't be purchased online, and the increased cost of food and fuel is keeping them from purchasing much of anything else.
Re: “The inevitable shuttering of at least 3 billion square feet of retail space is a certainty.”
I live a half mile from an upscale mall.
They have just begun a $1 billion expansion/renovation (includes two 40 story condo buildings).
This is the heart of Microsoft country, straight east from Seattle.
Based on home prices, construction, and rents in my area, most people here seem to be in a very optimistic frame of mind.
The author makes a pretty compelling case for storm clouds and the approaching sound of thunder.
Not the kind of news I was hoping to hear as I approach my retirement years with limited savings and a modest outside income.
I try to stay out of Walmart because its clientele around here are far too often uncivilized jackholes.
This is a demographic problem and would be happening now in any case.
80 million Americans have passed through their highest spending years and into retirement or low-pay jobs.
Americans buy their biggest house on average at age 46. they buy vacations homes at 52.
Around 80 million Americans are between the ages of 50 and 68. They are leaving their spending and producing years and entering the push to save for retirement. At least, those who still have jobs and make enough to save something are doing so. Many have lost their retirement accounts to the depression, which is not yet half over.
The next generation is smaller and can’t help much since boomers and those following didn’t have many children. Most college grads can’t afford any house let alone the McMansions the Boomers need to sell.
Prepare and adapt, like always. Crisis is opportunity and most fortunes are made during depressions.
I can get anything I want (except for firearms) at a great price on Amazon, and usually shipped to my front door the next day for free.
Exactly....Obummer has 2 agenda’s..
As a black man (only half really) he desires every one be brought down to the level of those on the lowest rung economically, because then he feels no inferiority complex.
Secondly, he is following advice of his mentors Frank Marshall Davis and Alinsky....which basically wants no one to rise above any one else. Hard work or better intellect be damned.
We are witnessing results of Obummer’s efforts in living color and live action.
Shop near the end of the month, after the welfare checks have run out.
From what I've read, a good chunk of retiring baby boomers won't be able to afford more stuff and expensive hobbies. The same goes for people with large student loans.
Look what's happened the first three months of 2014:
Is there a death knell of Retailers? Yes, but I believe when Obama leaves office, there’ll be new stores opening.
For the last 6 1/2 years all the money to fuel the economy has been sucked out and shipped to the middle east for oil.
When gasoline prices double everything starts shutting down.
$50 or more every week X 100 million+ working families gone!
All that money removed from the economy with nothing gained, because O’bastard hates the oil industry!
Not sure I agree with that:
2013 cost of Chinese imports to America: $440 billion.
2013 cost of American exports to China: $122 billion.
Sure, we have a huge trade deficit with China, but people get SOMETHING for those dollars. We get nothing for that extra 50% of fuel dollars.
It would be no different than going home and burning a $50 bill every time you fill your gas tank. That money is just gone!
Well I say the situation isn’t that different, and that we need to stop spending money importing everything from China.
All that does long-term is to build up China, make China stronger, make China more wealthy and make America poorer every single year.
That appears to be a minority opinion though.
I do not believe however, we can continue our current course.
I strongly suggest we bring back American production.
I saw that, and it scares the living daylights out of me.
Hey, look at this.
U.S. Food Inflation Running at 22%
Heh, like "Learn to Speak Spanish" lessons? You made a brilliant case for amnesty according to the left.
“But this article contains a bit too much hyperbole for my liking.”
With that much real estate going bankrupt there will be major issues for banks.
Lower prices for individual homes, higher mortgage down payments as well as higher interest charges.
In Houston, one of the lower cost location in the country, the average home cost is about $200,000.00
20% down payment = $40,000.00 - Young people (30 yr old) will be hard pressed to come up with a down payment when they have NO savings
My house was bought for CASH (!) by a Chinese immigrant on the 2nd day my house went on the market.
Also note that China has created ONE Million new Millionaires in the last few years. So obviously China is not operating under strict communist manifesto.
Please note our market is open, so Chinese can participate.
Please note China’s market is closed, so what you have is China is making all the money, then turning around and buying up America.
That situation is not reciprocated. Just saying.
China has five times America’s population.
Eventually that will become a very huge problem.
And payday loan places.
“Or maybe everyone is just shifting to shopping online. Duh.”
My wife and I fit that mode, more each day.
My wife could be a Talbot’s model. She never needs any altering. with Talbot’s clothing. Talbot’s clothes fit her perfectly and don’t go out of style.
A few years ago after the melt down, our nearest Talbot’s closed. So she starting buying on line and still does. Seldom is there a problem, if there is we send it back to Talbot’s with the self enclosed label prepaid in the shipping box. She buys when there is a sale.
I like our local sporting goods store. However, I know more about two handed fly rods and the two handed lines and reels I might need than anyone in the store, since two good reps left the store. So if I feel that I need a new two handed rod or line, I buy on line or have custom made rods or lines made by people I know and can order from on line.
I started buying books from Amazon after our liberal bookstores in town refused to carry conservative books. Those chains and independents closed a long time ago.
Malls out here have roaming gangs of feral thugs in the mall and out in the parking lots. I don’t have roaming gangs of ferals in my home or on our land when I buy online.
“It would be no different than going home and burning a $50 bill every time you fill your gas tank. That money is just gone!”
After reading your post, I knew that you probably didn’t live in California.
I can’t remember when we filled a tank and got by with $50. Both of us don’t let the tank get below 1/4.
“I can get anything I want (except for firearms) at a great price on Amazon, and usually shipped to my front door the next day for free.”
It is amazing how much you can save across the board at Amazon.
One of our younger relatives is an avid bicycle rider, and we can buy top quality clothing and other gear at Amazon at great savings.
I’m in the process of doing some involved research re health and the lies we have been told. Textbook and reference books are very expensive. I have them Kindled to my PC for a few bucks per book. I book mark an interesting page or series, and I can go to that part of that book in seconds.
My only problem with Amazon is how their programmers apparently don’t like the newer Explorer updates. So I use Google with zero problems.
Re-read my post. The $50 that is burned is the extra 50% you paid on that $100 tank of gas.
It should have only cost $50 to fill the tank.
“Shop near the end of the month, after the welfare checks have run out.”
Just shop before noon before the lazy and hung overs are out of bed.
Avoid weekends except when a local pro team is playing.
Thanks: “Re-read my post. The $50 that is burned is the extra 50% you paid on that $100 tank of gas.
It should have only cost $50 to fill the tank.”
It is even worse out here in Californicator land. Only gas made specific for California can be sold here. So there is no competition.
Also our taxes are among the highest in the nation.
“My house was bought for CASH (!) by a Chinese immigrant on the 2nd day my house went on the market.”
Last summer we did a refi on our home to keep it going.
Our banker said that in our area of Northern California, the # 1 group people buying homes with cash were from Texas, and most had left California to go to Texas to make money. They were still living/working Texas, but they had a home in California for fun times.
#2 Group were Asians with cash and #1 in that group were Chinese from China.