Posted on 02/01/2016 8:58:20 AM PST by SeekAndFind
Major retailers in the United States are shutting down hundreds of stores, and shoppers are reporting alarmingly bare shelves in many retail locations that are still open all over the country. It appears that the retail apocalypse that made so many headlines in 2015 has gone to an entirely new level as we enter 2016. As economic activity slows down and Internet retailers capture more of the market, brick and mortar retailers are cutting their losses. This is especially true in areas that are on the lower portion of the income scale. In impoverished urban centers all over the nation, it is not uncommon to find entire malls that have now been completely abandoned. It has been estimated that there is about a billion square feet of retail space sitting empty in this country, and this crisis is only going to get worse as the retail apocalypse accelerates.
We always get a wave of store closings after the holiday shopping season, but this year has been particularly active. The following are just a few of the big retailers that have already made major announcements…
-Wal-Mart is closing 269 stores, including 154 inside the United States.
-K-Mart is closing down more than two dozen stores over the next several months.
-J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.
-Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.
-The Gap is in the process of closing 175 stores in North America.
-Aeropostale is in the process of closing 84 stores all across America.
-Finish Line has announced that 150 stores will be shutting down over the next few years.
-Sears has shut down about 600 stores over the past year or so, but sales at the stores that remain open continue to fall precipitously.
But these store closings are only part of the story.
All over the country, shoppers are noticing bare shelves and alarmingly low inventory levels. This is happening even at the largest and most prominent retailers.
I want to share with you an excerpt from a recent article by Jeremiah Johnson. The anecdotes that he shares definitely set off alarm bells with me. Read them for yourself and see what you think…
*****
I came across two excellent comments upon Steve Quayle's website that bear reading, as these are two people with experience in retail marketing, inventory, ordering, and purchases. Take a look at these:
#1 (From DJ, January 24, 2016)
"Steve-
[Regarding the] alerts about the current state of the RR industry. This is in line with what I've been noticing as I visited our local/regional grocery store, Walmart, and Target this week in WI. I worked in big box retail for 20 years specializing in Inventory Management. These stores are all using computerized inventory management systems that monitor and automatically replenish inventory when levels/shelf stock get low. This prevents "out of stocks" and lost sales. These companies rely on the ability to replenish inventory quickly from regional warehouses.
As I shopped this week and looked at inventory levels I was shocked. There were numerous (above and beyond acceptable levels) out of stocks across category lines at all three retailers. And even where inventory was on the shelf, the overall levels were noticeably reduced. Based on my experience, working for two of these three organizations in store management, they have drastically/intentionally reduced their inventory levels. This is either due to financial stresses/poor sales effecting their ability to acquire new inventory, or it could be the result of what was mentioned earlier regarding the transporting of goods to these regional warehouses. Either way this doesn't bode well for the what's to come. Stock up now while you can!"
#2 (From a Commenter following up #1 who didn't provide a name, January 26, 2016)
"I'd like to tailgate on the SQ Alert "based on my experience…" regarding stock levels in big box stores. This weekend we were in two such stores, each in fairly isolated communities which are easily the communities' best source for acquiring grocery items in quantity.
I myself worked in retail (meat) for thirty years so I know exactly what a well-stocked store looks like, understand the key categories and category drivers, and how shelves are stocked and displays are built to drive sales and profits. I also understand supply chain and distribution methodologies quite well.
Each of the stores we were in were woefully under-stocked. This time of year-the few weeks following the holidays-is usually big business in groceries and low stock levels suggest either poor ordering at the store level, poor purchasing at the distribution level or a purposeful desire to be under-stocked.
Anyone familiar with the retail grocery industry is also familiar with how highly touted "the big box store's" infrastructure is. They know exactly when demand is high and for what items and in what quantities. It is very unlikely that both stores somehow got "surprised" by unusually high demand. It is reasonable then to imagine that low stock levels in rural areas with few options is a purposed endeavor to assure that both the budget conscious and the folks in more remote areas are not fully able to load up their pantries.
Simply put I believe the major retailer in question is doing their part to limit the ability of rural America to be sufficiently prepared. Nevertheless, we are wise to do our best to keep ahead of the curve. God bless your efforts, Steve."
*****
Yes, this is just anecdotal evidence, but it lines up perfectly with hard numbers that I have been discussing on The Economic Collapse Blog.
Exports are plummeting all over the globe, and the Baltic Dry Index just plunged to another new all-time record low. The amount of stuff being shipped around by air, truck and rail inside this country has been dropping significantly, and this tells us that real economic activity is really slowing down.
If you currently work in the retail industry, your job is not secure, and you may want to start evaluating your options.
We have entered the initial phases of a major economic downturn, and it is going to be especially cruel to those on the low end of the income spectrum. Do what you can to get prepared now, because the economy is not going to be getting better any time soon.
There are still some stores with high prices that will make it. I have friends who shop frequently at Cabela’s and they all have the Cabela’s credit card that they use for everything. I would guess Cabela’s makes as much on their credit card as they do at the stores so that has to help their bottom line.
Maybe that’s why gas prices have plunged!
I bought four trousers through Amazon in the past year, as it was the only way of getting the styles and sizes I wanted.
RE: I bought four trousers through Amazon in the past year, as it was the only way of getting the styles and sizes I wanted.
But you haven’t tried them on for size ....
It wasn’t too many years ago, as Walmart stores were popping up across the country, that many people, primarily libtards, would hold protests at the new Walmart building sites, decrying how Walmart would bring doom and gloom to all the local mom and pop stores. I still overhear conversations by these same people how they sanctimoniously still won’t shop at Walmart, but then in the same conversation brag about being a ‘member’ of Amazon Prime, how they get such awsome deals, and do so much shopping there.
I and others have noticed the small family run local grocery stores are frequently out of stock on items. Even when I pull all of the stock for an item, it’s not restocked for well over a week.
“Yep just another sign that we are entering a deflationary depression.â€
“That is what I am beginning to believe as well.”
Even the online retailers must be getting hit, as they have to rely on the shippers like everyone else. Those warehouses still have to get filled by ship and RR.
And with all the store closings, don’t forget about the tens of thousands of lay offs.
Then the internet gets shut down, then what? The "Technology Trap" gets tighter and tighter with each passing day.
“The local gun shops are doing real well. ;) Just saying...”
What if you did not HAVE to go there to pick up the gun you bought online?
“I drove less than 100 miles last year.”
Wow! I’m genuinely impressed! It’s a minimum of 66 miles round trip for me for a single town trip.
-We started seeing an interesting trend last November, the lack of shoppers a few days before the normal paydays of the 1st and the 15th of the month.=
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In my rural area we gauge shopping by ebt fillup days. The small family owned market with the best in store butcher meat market in the county stocks up the lowest price cuts in the mega family packs the day before ebt day. The only time I can afford to buy any meat at all on SS so I buy my meat while I have the first choice. When the ebters hit, they hit hard piling up carts with 10-15 family packs of meat that retirees can’t even dream of buying in that quantity.
Interesting idea with win-win-win potential. Brick and mortar stores can become smaller with significant rental, staff, and pilferage reductions. Bulk paid for freight drops, everybody wins. Buyer saves time, gas, and gains security over door step drop off, especially on big ticket items.
Completes the modernized Sears and Roebuck model
“B&M...going the way of the buggy whip.”
It may be in a state of change but B&M is not totally going away. We are in a precarious situation until the gov is shackled.
You joke, but that is probably worth 10% vs Retail.
Here in Apex NC a new Cosco is opening in March and a Publix right after that. Around my little town we have Super Walmart, Super Target, Lowes food and hardware, Home Depot, Kroger, Harris Teeter, office Depot and 100s of Mom and Pops. I guess I’m blessed to live here and be able to survive.
Admittedly you could go to a ‘kitchen table’ FFL. However, the dems are working OT to put them out of business. In the end you have to go somewhere locally to do the transfer. That will always be a local....usually a gun shop.
I have three Wal-Marts near me with the furthest being only 7 miles. I have two Home Depots near me, one maybe 3 miles to the east and another 3 miles to the west as well a a Lowe's about a mile away.
Personally I think the closings are due to increased competition........
The depression continues.
There is a post here on FR from a few months ago out there with more details. I can find the link later. I tend to fat finger things on a phone.
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