Retail market changes

Tom Dougherty, CEO – Stealing Share

6 December 2018

Retail market changes are akin to climate change

Are you paying attention to the many retail market changes? I am. Some fundamental changes are afoot. I believe the days of large generalized department stores are ending.

Macy’s, JC Penney, Belk, Bloomingdales and, of course, Sears. But don’t forget. This list includes Walmart, Kmart and Target. They are all in trouble.

Climate Deniers

I’m sure you hear deniers of climate change talking about the weather. You know the drill.

“Global warming is a hoax. Look at all this snow!” Or, “This Arctic blast is crazy. So much for global warming.”

The skeptics in Congress (not scientists but politicians) brought snowballs to session. “Here is to global warming,” before tossing them at environmental activists in the House of Representatives.

The problem here is the taking of weather as climate. They are two different things.

Same refrain from retailers on retail market changes.

“This is the busiest Christmas holiday shopping season ever.”

“So, retailers. You may have an impressive holiday season. You may even break records. Just don’t break your arms patting yourself on the back. It is a fall drizzle. The hurricane of retail market changes is still coming. And it’s a category 5.”

Retail market changes are REAL

Attention retailers— Get your heads out of the sand.

retail market changesIt won’t be long. Rising ocean levels are overrunning malls and anchor stores. Better look to moving to higher ground. Or, keep your eye on the weather and ignore severe climate changes in retailing.

Retail market changes reflect economies

Living organisms change. Social habits are such beasts. The seek out economies and exploit them.

This means that all endeavors naturally seek out the path of least resistance. When I speak of a search for economies, this is precisely what I mean. All things seek economy. Saving energy, dollars and effort.

Just visualize an elevator in an office building. Sure, some still use stairs. But, most queue up for the lifts. Retail market changes are the elevators. The old model is the stairwell.

So what has changed, and is it permanent?

The buying public has new habits. They type Amazon in their browsers before they even consider Googling. That is a permanent shift. It’s retail market change resulting from new economies.

It’s easier. It saves them time, money and aggravation.

The new consumer is price savvy. They learn what everything SHOULD cost. And they expect no shipping charges and next day delivery.

How does Amazon do it?

That is the new economy. Amazon does not have to support expensive retail locations in high-rent districts. Even Walmart, whose cost structure is less than traditional retail, has higher fixed costs than Amazon. Even with free shipping.

Christmas and Black Friday

So, retailers. You may have an impressive holiday season. You may even break records. Just don’t break your arms patting yourself on the back. It is a fall drizzle. The hurricane of retail market changes is still coming. And it’s a category 5.

What you currently count as an asset (owned real estate) is destined to become the world’s most expensive collection of billboards.

Hell. I might be wrong. I just hope you don’t get all your heat from wild fires.

See more posts in the following related categories: Retail

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Arya Stark had every right to get naked

  Arya Stark   Tom Dougherty, CEO - Stealing Share 24 April 2019 Arya Stark had every right to get naked (Game of Thrones spoiler alert! Especially when it comes to the beloved and now all grownup Arya Stark.)I was as shocked as everyone else this past...

5,994 and counting, retail closings at record numbers

  Retail closings   Tom Dougherty, CEO - Stealing Share 17 April 2019 5,994 and counting, retail closings at record numbers In 2018 alone, 5,864 retail locations closed. So far in 2019, retail closings stand at 5,994 and it is only April. If the pace stays...

Share This