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Thread: The crumbling Malls

  1. #21
    B&M will always have the niche for impulse purchases because you can have it in your hand and start using it now. But for big ticket items that need to be delivered anyway, there is no reason to buy them B&M.

  2. #22
    Originally Posted by tableplay View Post
    Originally Posted by Alan Mendelson View Post
    Malls and small businesses are dying because of Amazon. This will have a domino effect on REITs and real estate prices. A wave of bankruptcies is coming. I know of one small business that is about to file BK because Amazon is now selling it's merchandise.
    Alan, internet commerce accounts for only 10% of all sales transactions. The remainder are brick and mortar. So the main reason malls are dying is because people are just tapped out. So Amazon factors in a little bit for sure, but the bigger story is the lessening of discretionary money.
    That ten percent wipes out the profit of brick and mortar stores.

  3. #23
    Originally Posted by Alan Mendelson View Post
    Originally Posted by tableplay View Post
    Originally Posted by Alan Mendelson View Post
    Malls and small businesses are dying because of Amazon. This will have a domino effect on REITs and real estate prices. A wave of bankruptcies is coming. I know of one small business that is about to file BK because Amazon is now selling it's merchandise.
    Alan, internet commerce accounts for only 10% of all sales transactions. The remainder are brick and mortar. So the main reason malls are dying is because people are just tapped out. So Amazon factors in a little bit for sure, but the bigger story is the lessening of discretionary money.
    That ten percent wipes out the profit of brick and mortar stores.
    Back it up with a source.

  4. #24
    Back up your claim about less discretionary money. I thought the economy was booming?

    http://www.bea.gov/data/gdp/gross-domestic-product

  5. #25
    Originally Posted by tableplay View Post
    Originally Posted by Half Smoke View Post
    Originally Posted by tableplay View Post

    Alan, internet commerce accounts for only 10% of all sales transactions. bigger
    Internet sales grew to 13% in 2017 (30% more than what you stated) and accounted for 49% of the growth. The growth rate of internet sales last year was 16% the highest growth rate since 2011.
    That would mean total sales in e-commerce in 2017 experienced a marked increase from 11.6% in 2016.

    If a store loses 4% of its business, particularly a large business, it may seem like a small number but actually it's a tremendous loss.
    Sears is probably then next huge chain to surrender. There have been rumors about them completely disappearing for years. They're very close to bankruptcy.





    Right now, one of the main things propping up brick and mortar store sales is that as Christmas gets closer and closer consumers fear that something will go wrong with the delivery of their internet purchase and so they buy from a physical store. If delivery systems continue to improve and that fear lessens there will be more pain for brick and mortar.




    https://www.digitalcommerce360.com/a...ommerce-sales/
    https://www.businessinsider.com/ecom...-charts-2018-5 (from an article dated May 29th 2018 entitled "Online sales still account for less than 10% of all retail sales")
    relevant excerpt:
    "In fact, the first and only time e-commerce accounted for more than 10% of total retail sales was at the very end of 2017 — if it follows its historical pattern, it should be back at those levels some time this year. "
    The same source that tableplay just quoted says this :


    "Forrester predicts that online sales will account for 17% of all US retail sales by 2022, up from a projected 12.7% in 2017, according to Forrester's new Online Retail Forecast as cited by Digital Commerce 360. The report also expects US online sales to grow 13% YoY in 2017, which is five times faster than projected offline sales growth, and in line with the National Retail Federation's estimates."


    https://www.businessinsider.com/e-co...-amazon-2017-8
    Last edited by Half Smoke; 08-22-2018 at 12:09 PM.
    Of course what I'm saying is true. I saw it ON THE INTERNET.

  6. #26
    Originally Posted by Half Smoke View Post
    Originally Posted by tableplay View Post
    Originally Posted by Half Smoke View Post

    Internet sales grew to 13% in 2017 (30% more than what you stated) and accounted for 49% of the growth. The growth rate of internet sales last year was 16% the highest growth rate since 2011.
    That would mean total sales in e-commerce in 2017 experienced a marked increase from 11.6% in 2016.

    If a store loses 4% of its business, particularly a large business, it may seem like a small number but actually it's a tremendous loss.
    Sears is probably then next huge chain to surrender. There have been rumors about them completely disappearing for years. They're very close to bankruptcy.





    Right now, one of the main things propping up brick and mortar store sales is that as Christmas gets closer and closer consumers fear that something will go wrong with the delivery of their internet purchase and so they buy from a physical store. If delivery systems continue to improve and that fear lessens there will be more pain for brick and mortar.




    https://www.digitalcommerce360.com/a...ommerce-sales/
    https://www.businessinsider.com/ecom...-charts-2018-5 (from an article dated May 29th 2018 entitled "Online sales still account for less than 10% of all retail sales")
    relevant excerpt:
    "In fact, the first and only time e-commerce accounted for more than 10% of total retail sales was at the very end of 2017 — if it follows its historical pattern, it should be back at those levels some time this year. "
    The same source that tableplay just quoted says this :


    "Forrester predicts that online sales will account for 17% of all US retail sales by 2022, up from a projected 12.7% in 2017, according to Forrester's new Online Retail Forecast as cited by Digital Commerce 360. The report also expects US online sales to grow 13% YoY in 2017, which is five times faster than projected offline sales growth, and in line with the National Retail Federation's estimates."


    https://www.businessinsider.com/e-co...-amazon-2017-8
    But the malls are dying now at the current e-commerce percentage (when it is not that big of a factor at just 10%). It will be worse later when e-commerce becomes more of a factor.

  7. #27
    Originally Posted by Alan Mendelson View Post
    Back up your claim about less discretionary money. I thought the economy was booming?

    http://www.bea.gov/data/gdp/gross-domestic-product
    When did I say the economy was booming ? 42M Americans are on food stamps. Anyhow I guess you are not going to provide support that the e-commerce sales are wiping out B&M profits.
    Last edited by tableplay; 08-22-2018 at 12:36 PM.

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