Posted on 12/16/2016 12:45:26 PM PST by Red in Blue PA
I think stores are taxed on inventory.
Back in ‘72 and before, liberals were pushing the population explosion crap. America bought into it. Hence, abortion and a 3rd world invasion. Another win for evil.
Yes but do you like shopping for clothes in ONE store, or two dozen? That’s why malls are dying. All the “end cap” stores (Penneys, Sears, Macys) are primarily clothing stores, and more half the stores no on the end caps are clothing stores. Meanwhile of course the shift to digital media has killed the book and record stores that used to take up a lot of space. Radio Shack is mostly dead, there’s general one store for stinky ointments that girls like, but they have a tendency to go under and be replaced every couple of years. Pretty much the food court is the only thing you can count on besides clothing stores, and most of the food sucks.
It doesn’t work the way he says it does. Most of the world now revolves around JIT, just in time, nobody has warehouses, nobody has massive stock stored, they’ve got just enough in the supply chain to meet projected demand. If demand exceeds projection things get a little hairy for a few days. But more supply will arrive.
I’ll admit to being not much of a shopper. And I live in a smallish town. But are there real ‘department’ stores anymore. Stores that carry almost everything under the sun. When I was little, department stores were 5 or 6 floors that had almost anything someone could want. The local department stores are basically clothes and perfume/makeup.
If you ever get the chance, go through a Japanese department store. Restaurants, food like a grocery store, books like a bookstore, you can get lost.
You should see Randall Mall outside of Cleveland! A wreak!
We just went through a similar experience this week. We needed a carpet cleaner and picked one based on online reviews. Costco, Home Depot, and Walmart all sold the machine online and said it may be available in the store. We started at Costco and hit the other two stores plus Lowes with no luck; spent about an hour and a half searching through the box stores.
Went home empty handed. Spent 10 minutes on Amazon, got the machine delivered to our door in 36 hours and saved $30. The managers wonder why sales are slipping...
Actually more like 1982. The early to mid 80s was the peak of mall culture. As a youth, we used to hang out at the Orange Julius and mess with the mall cops. I liked the Chinese food place in the food court where you could get a big heaping plate for under $5. Then go see a movie in the multiplex. Or play Pacman in the arcade for a quarter.
“Can anyone explain how running your business this way makes sense, in terms of dollars and cents????”
It doesn’t. Not at all. It merely explains the stupidity that is today’s people.
People are herd animals; at least they act like it.
If one animal in the herd thinks saving money means cutting overages to a minimum, then all the animals think no overage at all, ever, is best, even if it means not having any sales at all. At least the metric they are judged by, the 0% overage, has been met.
Unfortunately, this is exactly the business owner’s viewpoint, too. “I like Marcy, she always has no overages, and that means the most profits since it means the least losses.”
Scott Adams was not a genius when he created the Dilbert comic, he was merely observing people patterns of behavior.
“I think stores are taxed on inventory.”
Which is actually a false conclusion as to why inventory is bad.
Yes, money spent on inventory that isn’t sold results in taxes on that money. However, the value of the goods purchased is what is taxed. Also, if they money we not spent on inventory, it is taxed at the full rate on income.
In numbers: Buy $100 worth of inventory. The inventory has a net value at tax time of $100 or less. Usually less, much less, and extremely rarely more. That same $100 held is taxed at $100.
This year I had three items in mind that I could buy from the mall. Went there last Sunday. Ended up being 1 for 3.
One item was a “as seen on TV” thing that the mall store had jacked up the price on it. I actually had approached the register with it in my hand when I saw the price. I turned around and put it back. The older lady at the register asked if there was something wrong. I said “too rich for my blood”. She shook her head and said “Walmart has it for $10 less.”
The second strike was a popular cookbook. The bookstore had sold out and wouldn’t be getting more stock before Christmas.
I swung by Walmart and picked up the ASOTV item. When I got home I ordered the book on Amazon.
I will think twice before I go to the mall again.
Not to mention you would have saved, let say 25 cents a mile in gas and wear and tear, plus your personal time of driving around. That might have been $10 or much more in savings plus the time.
I didn’t shop a single store for Christmas this year and saved at least $150 in gas and probably 32 hours in time. I had zero frustrations with traffic, everything was in stock online, I had product choices well beyond anything in retail inventory, and I even got some pretty nifty suggestive selling for things I never thought of (sometimes advertising works when it is not invasive and appropriate).
I have a few small items I do need to shop for, but a few hours time and a quick trips ill take care of it all. I could go online, but it just feels more Christmassy if I get out and do some small shopping.
“I will think twice before I go to the mall again.”
Your experience mirrors mine. Rarely in stock, often costs more, and I spent more time and effort than the item was worth.
Trust me...my wife and I are internet shoppers! It’s been a development of need over the last decade as stores carry less and less of what we traditionally buy. Plus, why do site-to-store via most retailers when you can do site-to-door cheaper with Amazon. There are reasons Amazon is winning big time right now: ease, selection, quick delivery, and price to name a few.
In my previous story, we went to town to eat at a restaurant with our daughters. The brick store shopping was just us trying to “help” the local people employed by the retail stores. It’s getting harder and harder to justify the time/cost when you’re not sure you’re going to find what you need. Online always has what you need if you can wait a couple of days.
Nordstrom is a follower, not a leader. It is moving to online retail way too late.
They have had a benefit of access to large credit resources for many years from which they could have drawn and invested in innovative sales that can only be reliably transacted in brick and mortar stores. For example, shoes, clothing templates, whole body scan measurements to be kept on computer and adjusted as necessary, free transportation with minimum purchase (e.g. Lyft, Uber), so many new innovations and they blew it off in favor of following the herd to cheaper made goods made in China, Asia and affixing brand name labels.
Then they caught wind of the internet and decided to use their credit privilege in making inroads into online sales without a value proposition that rivals Amazon and others.
It’s the same old story. Either innovate or die. They failed to nnovate.
Same with Sears and others.
There is a place for brick and mortar retailers led by smart innovators. But in dinosaur legacy retail, true innovators threaten middle management who risk displacement.
What I see is the looming death of “anchor stores”, huge department stores like Nordstrom. Sure, we need to try things on ... but those big stores have relatively lousy selection compared with the boutiques scattered thru the same mall.
I see the anchor stores dying off, and the malls figuring out how to expand the boutique offerings.
Mall owners don’t want small, interesting boutique stores - they want bland national chains with national advertising who are willing to sign long leases at $70/square foot. The malls in our area have successfully driven out all of the small stores in the last few years.
Nordstrom’s is a nice store, but not too many want to or can blow $4,000 for a dress.
What mall in Olathe.
My father shopped Jos A Banks by catalogue back in the 60s-80s, in the days before they had retail stores all over the country. He said their clothing was good quality and classic. My husband and our adult son shop in the stores. The salesmen know them and their preferences.
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