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  #101  
Old 03-02-2020, 07:35 AM
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Originally Posted by Dorjän View Post
Did Marcus buy the hat? How much did that one hat cost, for the level of service provided? How much time did all of that customer servicing, fitting, and refitting take, to sell that one hat (assuming he actually bought it). How many hats have to be sold this way for that place to pay the rent and provide the owner/employees with livable income? I'm honestly amazed that places like this can stay in business period.
A high end hat store is in a completely different category from most B&M retail and plays to different rules.
The last fedora I bought was purchased at a hat shop in Herald Square in Manhattan. It cost over $500.

I expect the red carpet treatment if I'm going to spend that much on a hat, and the store obliges. They know their stock, when I asked for beaver fur felt, the fellow knew exactly the hat for my taste and went in the back to find one in my size. He explained how to care for it, steamed it, provided a special brush for it, and so on.

I can't imagine many retail stores being able to reach that level of service while still remaining competitive.

(I have been wearing it for many years, so I have gotten my money's worth)
  #102  
Old 03-02-2020, 09:18 AM
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I believe the point was that Home Depot has no reason to hire the ex-construction guy as opposed to the ex-burger flipper or the ex-PhD. In fact a bad economy will just flood them with applicants, who will be fed into the corporate resume filter which will select the guy in the suit with no misspellings who has a masters in business.

And no matter who they hire, they won't bother to tell the guy they put at the plumbing department desk where the teflon tape is.
Sure, but in a hot job market like the current one, the likelihood of that MBA guy in the suit being willing to work at Home Depot is about zero. Same for the PhD holder, or even the ex-construction guy. All of them can (and likely do) make more money somewhere else.

It's supply and demand; it's why you start getting terrible service at fast food places when the economy is booming- anyone with any motivation or brain cells to rub together is working somewhere else for more money/better conditions(like Home Depot), leaving the people who literally have no other skills working there.

But when the economy gets worse, people get laid off and are willing to work for less/under worse conditions, so fast food places get a higher grade of worker for their minimum wage. Meanwhile, Home Depot may actually have guys in suits with MBAs, or ex-construction guys applying to work there, instead of in the corporate world or construction sites.


On the other subject, since the advent of online shopping, I've long felt that smaller, local stores ought to stop bothering doing stuff that they can't compete with the big boys on, and concentrate on being THE place for the things you can outcompete them on.

For example, I live roughly the same distance from a Home Depot and a True Value hardware store, now that the October Dallas tornado wrecked the nearby Home Depot. So I go to the HD for stuff that's essentially commodity items- sacks of concrete, drill bits, hacksaw blades, drain buildup remover, bulk screws/nails, etc.... IF I don't just buy it from Amazon.

I go to the local/more specialized stores for stuff that needs more hands-on expertise- if I'm trying to do something non-standard or can't find the bolt/screw/washer I'm looking for, it's off to the True-Value. For paint, it's typically Sherwin-Williams or the local Benjamin Moore store- they can match shades a lot better than the goons at Home Depot can, and their supplies are higher quality as well.

That's just it- your local hardware store isn't going to outcompete Home Depot or Wal-Mart on commodity type items due to economies of scale. The big box stores' supply chain and volume is going to cause lower prices on commodity type items than even the True Value wholesale outfit is going to be able to beat. So the littler guys are better off concentrating on stuff that Wal-Mart can't do well- matching your paint exactly, or selling seeds/fertilizer that are optimal for YOUR area, or stocking that weird-ass pentalobe screwdriver that the screws on Apple devices use.
  #103  
Old 03-02-2020, 10:58 AM
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Sure, but in a hot job market like the current one, the likelihood of that MBA guy in the suit being willing to work at Home Depot is about zero. Same for the PhD holder, or even the ex-construction guy. All of them can (and likely do) make more money somewhere else.

It's supply and demand; it's why you start getting terrible service at fast food places when the economy is booming- anyone with any motivation or brain cells to rub together is working somewhere else for more money/better conditions(like Home Depot), leaving the people who literally have no other skills working there.

But when the economy gets worse, people get laid off and are willing to work for less/under worse conditions, so fast food places get a higher grade of worker for their minimum wage. Meanwhile, Home Depot may actually have guys in suits with MBAs, or ex-construction guys applying to work there, instead of in the corporate world or construction sites.
Then you have the overqualification problem. If I'm the hiring manager for Home Depot and the economy is in a recession, sure I might be able to get an MBA or a construction guy to work the floor at $11/hr.

But why would I want to hire someone who I know has their resume out to a million different places and will bolt as soon as another job comes along and/or the economy improves? Wouldn't I still be better off hiring the minimally to moderately qualified employee knowing that he will be generally happy with the job he has, and any other job he finds will be in that same $11/hr range? Retraining is expensive. And again, as noted above, I don't get any added economic value from having the highly qualified guy working at the store.
  #104  
Old 03-02-2020, 11:07 AM
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It's interesting that JCPenney and Sears were the KINGS of you order it and we'll mail it to you. But at some point they went all in on brick and mortar retail, and then got disrupted by new you order it and we'll mail it to you businesses.

Sure the difference was it once was a printed catalog and now it's an online catalog. But it's got to suck knowing that you've been beat by a business model that you once pioneered.
  #105  
Old 03-02-2020, 11:34 AM
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It's interesting that JCPenney and Sears were the KINGS of you order it and we'll mail it to you. But at some point they went all in on brick and mortar retail, and then got disrupted by new you order it and we'll mail it to you businesses.

Sure the difference was it once was a printed catalog and now it's an online catalog. But it's got to suck knowing that you've been beat by a business model that you once pioneered.
The old school retailers largely missed the boat on the internet revolution. At some point, they decided that people either shop in the stores or order things on the internet for mail order, nobody uses the catalog anymore, so they got rid of it.

They didn't get the "an online catalog is just like a printed catalog" concept. A lot of companies did not understand that the internet wasn't just a thing where you ordered stuff out of a guy's basement or a server room. They could have transitioned the catalog to the internet, but many, many companies could not see the connection and either went out of business or are permanently crippled like Sears and JCPenney.
  #106  
Old 03-02-2020, 07:43 PM
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Yeah, I think some here have equated "retail" and "mall".
Malls in my city have a large number of cafes and restaurants, and they're doing just fine. Plus throw in the increase in leisure and even educational stuff (e.g. I've seen a couple malls with painting or photography classes going on) and there's still plenty of reason IMO to go there. This is not a commercial

Retail meanwhile looks like an ever more fierce competition over a decreasing pie.
In the UK though you have a few juggernauts like Primark, which are so good they can bring shoppers back to the high street. (FYI Primark doesn't offer online shopping, which must be a deliberate strategy, because otherwise it's really weird they haven't thought to do that.)
You say "decreasing pie" but retail is growing, both in store and online.

In 2019:
In store sales growth accounted for 43% of all retail growth in absolute dollar terms (4% growth of a large number (i.e. 84% of retail)).
Online sales growth accounted for 57% of all retail growth (16% growth of a smaller number (i.e. 16% of retail))

https://www.digitalcommerce360.com/a...ommerce-sales/



Note: one of my previous posts cited online as 10%, which was based on prior to 2019 data (I believe) and also after seasonally adjusting the numbers (not sure what that formula entails but the person writing that article had arguments on why it was a more relevant number)
  #107  
Old 03-02-2020, 08:32 PM
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It's interesting that JCPenney and Sears were the KINGS of you order it and we'll mail it to you. But at some point they went all in on brick and mortar retail, and then got disrupted by new you order it and we'll mail it to you businesses.

Sure the difference was it once was a printed catalog and now it's an online catalog. But it's got to suck knowing that you've been beat by a business model that you once pioneered.
My brother in law & I had that very conversation recently. We’re both baffled by how they couldn’t go into the on line catalogue business in a big way.
  #108  
Old 03-02-2020, 09:49 PM
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My brother in law & I had that very conversation recently. We’re both baffled by how they couldn’t go into the on line catalogue business in a big way.
http://www.searsarchives.com/catalog...catalogend.htm

Sears discontinued distribution of the general merchandise catalog in 1993.

Sears' timing was perfectly poor. Had they held onto the catalog business until the late 90s, they might have been able to connect the dots, but they got rid of it before "e-commerce" had a chance to take off. Thus, they were dead in the water when Amazon finally started getting noticed.
  #109  
Old 03-02-2020, 10:41 PM
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Is it more that they don’t want to hire the person who would be out the door in 2 weeks? Or, they don’t want an ambitious go getter?
The people I knew directly who had their applications discarded were high-school or college students, so not people who were likely to be offered great full-time positions anytime real soon, and this was in the 1980s and early 90s, so not a terribly tight labor market either.

I'm not sure how widespread that policy was, since a lot of Radio Shacks were franchises rather than corporate-owned, but it was a real thing. The high school here had an electronics class well into the 1980s (maybe even later), and more than one student proudly touted their classwork to the hiring manager, only to be told "we don't hire you if you have taken any electronics classes."
  #110  
Old 03-03-2020, 12:55 AM
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Sears discontinued distribution of the general merchandise catalog in 1993.
Sears' timing was perfectly poor. Had they held onto the catalog business until the late 90s, they might have been able to connect the dots, but they got rid of it before "e-commerce" had a chance to take off.
How does the problem of shipping fit into this story?E commerce depends on shipping, of course.

In the old days of the Sears catalog, I think it would take weeks to get your product.
Then, when Amazon started, it was books only. A book is easy to put in the mail, and most people don't mind if it takes a week to arrive, and then they would expect it to fit in their mailbox.

But what I think surprised everybody was the development of fast shipping. The concept that it was practical to ship everything, of every size and weight, and deliver it within 48 hours. We take it for granted now, but it takes a massive infrastructure.

Just like the internet, which existed in primitive form in the 1980's (Bulletin Boards, etc), but virtually nobody imagined that it would grow to what we know now.
How many people in 1990 would have dreamed of expecting the UPS delivery guy to leave expensive purchases on their porch? Was it even possible? And would consumers accept it?

Last edited by chappachula; 03-03-2020 at 12:58 AM.
  #111  
Old 03-03-2020, 06:21 AM
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Originally Posted by chappachula View Post
How does the problem of shipping fit into this story?E commerce depends on shipping, of course.

In the old days of the Sears catalog, I think it would take weeks to get your product.
Maybe two weeks if you ordered by phone,longer if you ordered by mail.
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Then, when Amazon started, it was books only. A book is easy to put in the mail, and most people don't mind if it takes a week to arrive, and then they would expect it to fit in their mailbox.

But what I think surprised everybody was the development of fast shipping. The concept that it was practical to ship everything, of every size and weight, and deliver it within 48 hours. We take it for granted now, but it takes a massive infrastructure.
I can tell you are a Prime member. Yes, there was two day and even overnight shipping before Amazon. And not everybody has a mailbox that a book will fit in, so some of us were accustomed to packages being left on the steps before Amazon.

What Amazon really changed was not that they invented two-day shipping , but they made it inexpensive enough that people would actually have things shipped that quickly, which also changed what people were willing to buy. I never paid the fee for faster shipping when I ordered from Sears, but I could get free two day shipping from Amazon for $79 a year. That was about what I paid over the year for regular shipping- so I bought a Prime membership. Which meant I never paid extra for shipping on Prime items , so I could order a $1.99 item from Amazon without paying $4.99 shipping. And getting my order quicker meant I would order different things- my order history in 1997 is books, then some small appliances and toys and CDs are added and now I order all sort of things I wouldn't wait more than a day or two for. I wouldn't order shampoo or nail polish and wait a week to get it delivered , but I order stuff like that from Amazon all the time
  #112  
Old 03-03-2020, 06:54 AM
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One problem with making the leap back to "catalogs" is that now they had all these stores they wanted to protect, and building up a robust internet presence, at least early on, seemed like a threat to that. You have all these people whose lives and careers were wrapped up in stores, maintaining and building parts of stores, working in stores. They wanted the internet to bring people INTO stores, not serve to replace them.
  #113  
Old 03-03-2020, 07:59 AM
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In the old days of the Sears catalog, I think it would take weeks to get your product.
Then, when Amazon started, it was books only. A book is easy to put in the mail, and most people don't mind if it takes a week to arrive, and then they would expect it to fit in their mailbox.
As I remember, when Amazon started, Bezos began with books because the existing distributors (Ingram, Baker & Taylor, etc) already had databases listing all of the books and they could drop-ship books directly to the purchaser. I think initially Amazon didn't actually stock any books itself but instead relied on the distributors. There was even a guy who set up an Amazon competitor out of his garage, stocking some of the more popular books and relying on the distributors to ship the rest. In short, the barriers to entry for starting an online bookseller were low.

It was only later that Bezos branched out into selling everything else and built warehouses and systems for stocking, retrieving and shipping.
  #114  
Old 03-03-2020, 01:39 PM
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But what I think surprised everybody was the development of fast shipping. The concept that it was practical to ship everything, of every size and weight, and deliver it within 48 hours. We take it for granted now, but it takes a massive infrastructure.
I think you are right that the concept of fast parcel shipping was a key shift in thinking.

Prior to that thinking, the catalog companies probably had long lead times so they could optimize the cost of their facilities and manpower by keeping them at 100% capacity, as opposed to building for peak demand and having X% unused capacity during the non-peak times which is a wasted investment (unless you are Amazon and competing on speed/convenience).
  #115  
Old 03-03-2020, 02:47 PM
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While I'm aware of Amazon and Sprawlmart taking business away from "traditional" stores, I presumed that there would generally be a "thinning of the herd" for retailers.

E.g., of the major sporting goods stores, some (maybe half?) of the chains would fold but once that happened the remaining chains would resume their normal sales.

So I'm seeing chains fold, but the remaining ones don't seem to be recovering. 'Tis odd. (Certain areas, like the niche JC Penney and Macys occupy still have a ways to go. I don't expect any turnaround in that area for a long, long time.)

It's also odd the difference between two-day and one-day shipping makes. So I'm thinking about buying something. See I'll get it tomorrow (would Jeff Bezos lie to me?) so I order it.
  #116  
Old 03-03-2020, 03:32 PM
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I'll just note that probably the best thing the retailers could do is turn to the boardgame cafe model where you mostly just provide a space for people to socialize in person, near a point of sell for their hobby.

JCPenney should install a parfait stand and free WiFi just outside the changing room, and encourage people to hang out and try out outfits.
  #117  
Old 03-03-2020, 03:49 PM
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Walmart is rumored to be developing their version of Amazon prime with free shipping and fast delivery
  #118  
Old 03-03-2020, 03:54 PM
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Walmart is rumored to be developing their version of Amazon prime with free shipping and fast delivery
It's called jet.com and been part of Walmart since 2016, with little success.
  #119  
Old 03-03-2020, 04:43 PM
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I'll just note that probably the best thing the retailers could do is turn to the boardgame cafe model where you mostly just provide a space for people to socialize in person, near a point of sell for their hobby.

JCPenney should install a parfait stand and free WiFi just outside the changing room, and encourage people to hang out and try out outfits.
Bookstores have been trying this model for a while. It didn't save Hastings.
  #120  
Old 03-03-2020, 04:51 PM
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I do think that after the "trend" of buying clothes online passes, that at least will come back to brick and mortar. Off the rack clothes just don't fit well and it's mandatory that they be tried on. Right now what people are doing is buying them online, trying them on at home and then returning what doesn't fit. Which might often be the entire order.
This feels so backwards to me. I'd rather drive a short ways and try clothes on before buying them, rather than have to wait for them to arrive, trying them on after the fact, then if/when they don't fit packing them up, leaving my home to ship them, and then maybe having to pay a shipping fee.

I only buy clothes online when absolutely necessary (like bras). A standard size tshirt or something, fine, I can order that online too. Anything else I would vastly prefer to try on and buy in person.

Last edited by Kovitlac; 03-03-2020 at 04:52 PM.
  #121  
Old 03-03-2020, 04:51 PM
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Bookstores have been trying this model for a while. It didn't save Hastings.
Indeed. Borders attempted to do pretty much the same, and they bit the dust in 2011.
  #122  
Old 03-03-2020, 05:20 PM
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This feels so backwards to me. I'd rather drive a short ways and try clothes on before buying them, rather than have to wait for them to arrive, trying them on after the fact, then if/when they don't fit packing them up, leaving my home to ship them, and then maybe having to pay a shipping fee.
That's the sort of thing that very much varies by person - if I'm going to buy clothes in person,I'm pretty much gong to have to do it on a weekend, because after work doesn't leave me much time to get there, shop and eat dinner at some point before the stores close at 9. I'm not thrilled about shopping on the weekend because it invariably ends up taking up most of my day - plus I get annoyed when nothing I like is available in my size. On the other hand, when I buy online, I'm usually buying a brand I know, so I rarely return items that don't fit. When I do, I pack them back up, usually get free return shipping label at drop them at the UPS access point around the corner on my way to work. I don't buy all my clothes online- but I do buy nearly all of my shoes online. Beats the hell out of spending an hour or two looking for a pair I like in my size and often being unsuccessful.
  #123  
Old 03-03-2020, 05:28 PM
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I believe the point was that Home Depot has no reason to hire the ex-construction guy as opposed to the ex-burger flipper or the ex-PhD. In fact a bad economy will just flood them with applicants, who will be fed into the corporate resume filter which will select the guy in the suit with no misspellings who has a masters in business.

And no matter who they hire, they won't bother to tell the guy they put at the plumbing department desk where the teflon tape is.
I know that it's not uncommon for MDs to lose their medical license, but how on earth does that happen to a PhD? And what happens? They can no longer practice philosophy?
  #124  
Old 03-03-2020, 05:34 PM
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I know that it's not uncommon for MDs to lose their medical license, but how on earth does that happen to a PhD? And what happens? They can no longer practice philosophy?
Seriously?
  #125  
Old 03-03-2020, 05:36 PM
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Seriously?
No, not seriously. It's a joke. I'm guessing you meant ex-professors.
  #126  
Old 03-03-2020, 05:53 PM
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No, not seriously. It's a joke. I'm guessing you meant ex-professors.
Actually I meant woooosh
  #127  
Old 03-03-2020, 06:02 PM
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Walmart is rumored to be developing their version of Amazon prime with free shipping and fast delivery
They are working on it but they are way way behind Amazon.

Walmart's systems and facilities were designed for distribution to stores instead of small order fulfillment to consumers. The machinery, processes and algorithms are very different between those two models, which is why Walmart is starting from scratch with their fulfillment centers. They have about 6 compared to Amazon's 175.
  #128  
Old 03-03-2020, 06:13 PM
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In the old days of ordering out of Sears catalog shipping times were measured in weeks, not single digits of days. Being able to ship slow meant shipping cheaply via truck or even train, which saved money.

Routine two-day and next-day delivery was the thing with Amazon. They somehow made it work, but it's hard to compete because that means for a lot of things you have to ship via air, and that's more expensive.
  #129  
Old 03-03-2020, 06:19 PM
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It's called jet.com and been part of Walmart since 2016, with little success.
No, jet.com is declining.
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Walmart has also shown a willingness to change course if something isn’t working. The retail giant acquired Jet.com in 2016 for $3.3 billion. The company announced in June 2019 that it would absorb Jet.com staff as part of what The Wall Street Journal called a “winding down.”
https://www.forbes.com/sites/paularm...virus-gouging/

Instead they are talking about Walmart+
Quote:
As soon as next month, Walmart plans to start publicly testing a membership program called Walmart+, according to sources. The program is expected to essentially launch as a rebrand of Walmart’s existing Delivery Unlimited service, which charges customers $98 a year for unlimited, same-day delivery of fresh groceries from one of the 1,600-plus Walmart stores in the US where the program is available... Sources said that the amount of the Walmart+ fee could still change or the company might test multiple price points.

But the long-term vision for Walmart+ is for the program to add more perks, which could include discounts on prescription drugs at Walmart pharmacies and fuel at Walmart gas stations, as well as a Scan & Go service that would allow shoppers to check out in Walmart stores without waiting in line — a tool Walmart briefly tested but discontinued nearly two years ago.
https://www.vox.com/recode/2020/2/27...p-amazon-prime

Last edited by PastTense; 03-03-2020 at 06:22 PM.
  #130  
Old 03-03-2020, 06:52 PM
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Bookstores have been trying this model for a while. It didn't save Hastings.
Book clubs are generally not successful.

Getting a group of teen girls to sit around chatting and trying on clothes has a plausible chance of success. Might not. I'd give it a go if my alternative was certain death.
  #131  
Old 03-04-2020, 07:12 AM
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Books stores are a good example of the "thinning isn't helping" issue I posted about.

Okay, so Borders/Walden and so on are gone. Barnes & Noble is still around. With so little chain brick-and-mortar competition and a supposed uptick in physical book sales, one would think it would be doing better. Not at all. Losses, store closings, layoffs. The usual.

Just found out that the last B&N close to us is gone. And "close" is a misnomer. Now it would be a really long drive to get to one.
  #132  
Old 03-04-2020, 09:48 AM
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Online shopping is also causing brick and mortar stores to add more services. For example, at Wal-Mart, I can go online, add anything in the store to my cart, pay for it, and swing by after work, park outside and someone loads everything I bought into my car. Anything except booze. For some reason, my state law won't allow it. All of this at no additional charge.

There's nothing technologically fancy about that. This could have been done in 1988, of course not online, but maybe by faxing your order to the store. Online sales have forced these stores to add more services to stay relevant.
  #133  
Old 03-04-2020, 09:57 AM
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*duplicate

Last edited by UltraVires; 03-04-2020 at 09:58 AM.
  #134  
Old 03-04-2020, 10:04 AM
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Books stores are a good example of the "thinning isn't helping" issue I posted about.

Okay, so Borders/Walden and so on are gone. Barnes & Noble is still around. With so little chain brick-and-mortar competition and a supposed uptick in physical book sales, one would think it would be doing better. Not at all. Losses, store closings, layoffs. The usual.

Just found out that the last B&N close to us is gone. And "close" is a misnomer. Now it would be a really long drive to get to one.
There is hope.

B&N's new CEO is James Daunt, he turned around the Waterstones book store chain in the UK by changing a few things (from memory: making book store a place people want to go, changing how deals are structured with publishers, etc.). You would have to read an article to get the full details but it does seem to be working.
  #135  
Old 03-04-2020, 10:46 AM
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Quote:
Originally Posted by chappachula View Post
How does the problem of shipping fit into this story?E commerce depends on shipping, of course.

In the old days of the Sears catalog, I think it would take weeks to get your product.
Then, when Amazon started, it was books only. A book is easy to put in the mail, and most people don't mind if it takes a week to arrive, and then they would expect it to fit in their mailbox.

But what I think surprised everybody was the development of fast shipping. The concept that it was practical to ship everything, of every size and weight, and deliver it within 48 hours. We take it for granted now, but it takes a massive infrastructure.

Just like the internet, which existed in primitive form in the 1980's (Bulletin Boards, etc), but virtually nobody imagined that it would grow to what we know now.
How many people in 1990 would have dreamed of expecting the UPS delivery guy to leave expensive purchases on their porch? Was it even possible? And would consumers accept it?
Sears used to ship entire houses. (In pieces.) Back in the 1930's and earlier.

People routinely ordered large items from Sears -- I've got a 1950's catalog full of among other things full-size furniture and appliances; not to mention farm equipment including grain elevators and manure spreaders -- all through its existence as a catalog store. No, orders didn't get there within 48 hours; more like a couple of weeks, part of which time was taken up with the time it took a mailed-in order to get to Sears. But the size and weight of what was ordered wasn't the issue.

Really, the whole point of the Sears catalog was that you could order just about anything by mail. People were no longer restricted to what was available locally. As other mail order catalogs became common, and as greater ease of travel made it easier for more people to go shop in a large city with more choice of items, this became less of an advantage. But when they started drastically cutting down what they carried -- I think that as much as anything was what got them into trouble. They'd been the place where you could get anything. When Sears became just another place where you could only get some things, they didn't have an edge over lots of other places where you could get those same things.
  #136  
Old 03-05-2020, 06:44 AM
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We started watching the Frontline documentary on Amazon last night.

IIRC, the stats on books are something like 60% paper copy, 80% e-book copy market share for Amazon.

That's a large share, but seems to leave room for one chain like B&N to do well.

(The documentary is scary in terms of the PR lengths Amazon goes to. Over and over Amazon dismisses other peoples' stats on Bad Things but refuses to provide their own stats. We are living in an era where you can just make any claim you want and get away with it.)
  #137  
Old 03-05-2020, 04:51 PM
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My closest mall has 3 or 4 gyms now. So weird.
  #138  
Old 03-05-2020, 07:56 PM
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Are restaurants really doing well? Hmm...


This article would seem to say otherwise:

Restaurant bankruptcies are increasing, and more could be on the way

Some key quotes:

Quote:
Go back to November, and there have been seven bankruptcies accounting for 13 restaurant chains. That’s not including the filing by big Sonic Drive-In franchisee SD Holdings.

In its report, Fitch cited reasons for the industry’s challenges that will surprise nobody reading this post: “a long period of declining sales due to heightened competition, shifting consumer tastes, rising competition from food delivery options and the inability to maintain brand relevancy, along with higher labor costs due to increasing minimum wages.”

“Despite a strong economy and modest same-restaurant sales growth in 2019, traffic trends remain weak, a dynamic that is expected to persist in 2020,” Fitch wrote in its report. It noted that shifts in consumer preferences, as baby boomers eat out less and younger Gen Z and millennial consumers eat out more, is making more restaurant chains irrelevant.

Retail shifts are also influencing behavior, because consumers aren’t shopping all that much.
  #139  
Old 03-05-2020, 09:02 PM
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I know its late in the thread, but here is my perspective as a business owner.


I own(ed) a chain of 3 stores, and went through a major transformation and effectively only own 1, and became a landlord to another.


When i owned all 3 i had:

#1 Liquidation Store (Started 2015)
#2 Grocery Store (Started 2017)
#3 Grocery Store w/Pizza Restaurant (Started 2018)

I currently only have store #1 and became the landlord to store #2.

Store #3, i had to close down because of staffing issues (literally the only reason) constant problems with no shows, stealing, etc. I went through 30 employees in 9 months.

Store #2 was did well, until Dollar General came to town. It was still profitable but too much work for almost no money. So i gave the store to the general manager (who had worked there for 20 years and wanted to buy it anyway) so she now runs the store, and i am the landlord.

Store #3 sales were actually up 30% year over year, so now thats what i am focusing on.

I think as long as a brick and mortar store has a niche that customers are seeking, they can survive.
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