Why is retail doing so badly in the US

[Bubble99]

Why is retail doing so badly in the US?

I keep reading of horror stories of more and more retail stores closing in the US. Why? Why is retail doing so badly now but was so profitable before?

https://i.postimg.cc/VsgB4bvr/IMG-4975.png

 

[Bodhitree]

More people buying stuff online from China…

 

[Bodhitree]

This success story about the turnaround of Waterstones in the UK (and later Barnes and Noble in the USA by the same man) may interest you…

 

[Huntn]

The Capitalist End Game in full bloom. It’s a topic that really can’t be discussed fully in this forum due to imposed restrictions on discussions.

 

[Apple fanboy]

Why is retail doing so badly in the US?

I keep reading of horror stories of more and more retail stores closing in the US. Why? Why is retail doing so badly now but was so profitable before?

https://i.postimg.cc/VsgB4bvr/IMG-4975.png

Who goes shopping? Figures are the same across Europe.

Amazon and other online platforms are where people spend there $/£/€ these days.

 

[uacd]

Teavana was acquired by Starbucks in 2012. In 2018 they closed all 379 retail stores. Now they sell their teas in every Starbucks instead. Probably just an expenditure optimization that coincided with general trend of teas becoming less popular than coffee. If we follow their logic, there are less people that will go to the specific tea store just to buy their daily beverage, most will just go to their local convenience store or supermarket and grab whatever they see on the shelves.

Tea trade is not an easy business. Even coffee is easier. One has to have big enough staff to maintain consistency from one pack to another, have their own tea testers, find new supply chains etc. Thus instead of burning money on two fronts Starbucks decided they will just use one brand for everything.

Though I understand what you mean, I don’t like general trend of “everything going online” either. Moreover, I am kinda tired of having to search all the stuff I need online instead of just buying it in store. Real stores have “soul” and appeal

 

[Mrbobb]

As already mentioned, in the U.S. is online shopping.

But is not perfect, you hear the stories of mechanics trying to order parts online, pay the money, just to find out vendor don't really stock the parts and the waiting list is 6 months! but most other items are commodities so hopefully they don't follow the cars parts.

I hate going to the stores to find out they really don't have the item, GGGRRrrr, drove all the way down there and...
In the U.S. is about Just-In-Time, no renting big warehouses to store the stuff. In other countries they still like their bazaars. OTOH I have resisted Amazon Prime, to me that's First World problem, I got other things I can be doing for the average package to arrive, send it to me free shipping that's my moto.

 

[Apple fanboy]

As already mentioned, in the U.S. is online shopping.

But is not perfect, you hear the stories of mechanics trying to order parts online, pay the money, just to find out vendor don't really stock the parts and the waiting list is 6 months! but most other items are commodities so hopefully they don't follow the cars parts.

I hate going to the stores to find out they really don't have the item, GGGRRrrr, drove all the way down there and...
In the U.S. is about Just-In-Time, no renting big warehouses to store the stuff. In other countries they still like their bazaars.

I only go into town a handful of times a year.
I bank online. I cut my hair at home and I rarely go out for coffee. That’s about all that’s left in UK high streets.
The only reason I do go is if I’m buying a sofa or bed. But that about once every 15 years.

 

[dannyyankou]

Executives prioritize short term profits at the expense of everyone else.

 

[Apple fanboy]

Executives prioritize short term profits at the expense of everyone else.

Executives prioritise profits above everything else.
That is no longer in bricks and mortar stores. The world has moved on.

 

[Bubble99]

How can Amazon fill the need of all these stores? Unless people are shopping at other online websites.

 

[Apple fanboy]

How can Amazon fill the need of all these stores? Unless people are shopping at other online websites.

Well yes plenty of online alternatives.

Name 5 things you can’t get online (product not services).

 

[Mrbobb]

How can Amazon fill the need of all these stores? Unless people are shopping at other online websites.

There are others but Amazon is the biggest. God they have their own fleet of planes 'cuz ups/fedex is too slow for them. Bezos is the 1-2-3 riches for nothing (and Vergara told him no).

 

[chown33]

Name 5 things you can’t get online (product not services).

Gasoline (petrol) is one, AFAIK. I mean, I haven't heard of it being delivered, but maybe I'm just out of touch.

Maybe DoorDash would have a driver pick up a gas can, take it to a gas station, fill it up, and return it. Or if you already own a can, a ride-share driver could be summoned to drive you to a station, fill it up, then return.

I was trying to think of other things bought in bulk, without containers, and didn't really think of any:
Water: bottled water is simple.
Hay: a DoorDash driver with a pickup truck could probably handle a dozen bales.
Lumber: driver with pickup truck again, or some home-repair stores will deliver.
Gravel: already delivered in a truck (lorry).
Coal: roll eyes.

 

[chrono1081]

People can't afford anything anymore. I live in the rust belt, make close to 6 figures, live in one of the cheapest places you can get where I live, have zero debt (just a car lease which is half what most people pay), spend very little outside the essentials, and I live almost paycheck to paycheck.

Rent + car payment + utilities (internet, gas, electric, cell phone) take half my take home pay right off the bat. Groceries are about $600 a month because food is goddam expensive here for no good reason. There's not much left after that.

 

[Apple fanboy]

Gasoline (petrol) is one, AFAIK. I mean, I haven't heard of it being delivered, but maybe I'm just out of touch.

Maybe DoorDash would have a driver pick up a gas can, take it to a gas station, fill it up, and return it. Or if you already own a can, a ride-share driver could be summoned to drive you to a station, fill it up, then return.

I was trying to think of other things bought in bulk, without containers, and didn't really think of any:
Water: bottled water is simple.
Hay: a DoorDash driver with a pickup truck could probably handle a dozen bales.
Lumber: driver with pickup truck again, or some home-repair stores will deliver.
Gravel: already delivered in a truck (lorry).
Coal: roll eyes.

Well I drive an EV so my (equivalent) gas comes via electricity line.

It’s tough to think of something you can’t have delivered. That’s why shops are closing. That and the good points made by @chrono1081.

 

[Apple fanboy]

People can't afford anything anymore. I live in the rust belt, make close to 6 figures, live in one of the cheapest places you can get where I live, have zero debt (just a car lease which is half what most people pay), spend very little outside the essentials, and I live almost paycheck to paycheck.

Rent + car payment + utilities (internet, gas, electric, cell phone) take half my take home pay right off the bat. Groceries are about $600 a month because food is goddam expensive here for no good reason. There's not much left after that.

Tough. I’m about 12-24 months away from finishing our mortgage. I can’t wait to finish that.
I hope things improve for you soon. But the way interest rates, food prices and petrol are going up it seems things are more likely going to get tougher before they get better for many.

 

[weckart]

Well yes plenty of online alternatives.

Name 5 things you can’t get online (product not services).

Well, strictly speaking any five items from Primark. It resisted online trading for the longest time and even now it is click and collect only so you still have to make a foray into the shop. It definitely won't deliver to your door or a locker.

 

[Apple fanboy]

Well, strictly speaking any five items from Primark. It resisted online trading for the longest time and even now it is click and collect only so you still have to make a foray into the shop. It definitely won't deliver to your door or a locker.

I’ll take your word for it. I’ve never brought clothes from there. I rarely buy clothes. It was one of the last things I stopped buying in person though. But I’ve adapted to that as well.

 

[Bodhitree]

Well yes plenty of online alternatives.

Name 5 things you can’t get online (product not services).

One thing is the actual experience of being in a pleasant store environment. That was the lesson Waterstones learned in the UK, they put power for what books to stock back in the hands of local teams in order to empower them to provide the best experience for their customers - personal service and recommendations tailored to local tastes.

Plus they made people want to shop at Waterstones: soft lighting, couches to sit in, a coffee bar, stores organised so you can find what you want but are encouraged to explore, knowledgeable staff. So that you can leaf through books at leisure and maybe walk away with something. The result? A ‘destination shopping experience’ and a profitable bottom line.

People love Waterstones in the UK. The last time they had riots the only shop that was untouched was Waterstones, when the Bookfest 2025 was held by the Piccadilly branch people were queueing to get in. Online people are responding by saying how much they enjoy just getting lost in the experience of browsing books for an hour or two.

Sell the experience, not only the product.

 

[Apple fanboy]

One thing is the actual experience of being in a pleasant store environment. That was the lesson Waterstones learned in the UK, they put power for what books to stock back in the hands of local teams in order to empower them to provide the best experience for their customers - personal service and recommendations tailored to local tastes.

Plus they made people want to shop at Waterstones: soft lighting, couches to sit in, a coffee bar, stores organised so you can find what you want but are encouraged to explore, knowledgeable staff. So that you can leaf through books at leisure and maybe walk away with something. The result? A ‘destination shopping experience’ and a profitable bottom line.

People love Waterstones in the UK. The last time they had riots the only shop that was untouched was Waterstones, when the Bookfest 2025 was held by the Piccadilly branch people were queueing to get in. Online people are responding by saying how much they enjoy just getting lost in the experience of browsing books for an hour or two.

Sell the experience, not only the product.

That can work yes. But unfortunately it works the other way to. The firm I work for has a small retail presence. It's never been a main part of the business. Unfortunately we closed 2 of the 3 stores last year. Why? Because footfall was reducing year on year and when people did come in to find out what they needed as a solution (they are specialist photographic stores), people would go and order somewhere else online to save £5.

 

[VaZ]

China. Things cost way too much in America. Just look at Ford / GM / Dodge and the markups over the decades.

 

[NT1440]

Because the US has been in a recession (in all but official labeling) for 3+ years now. Most of the country lives paycheck to paycheck. Americans are broke and most shopping outside of groceries seem to be handled online these days.

 

[weckart]

That can work yes. But unfortunately it works the other way to. The firm I work for has a small retail presence. It's never been a main part of the business. Unfortunately we closed 2 of the 3 stores last year. Why? Because footfall was reducing year on year and when people did come in to find out what they needed as a solution (they are specialist photographic stores), people would go and order somewhere else online to save £5.

People go and try clothes on in shops for size then order on Amazon/ASOS to do the same. It's been happening for years now.

 

[Bodhitree]

People go and try clothes on in shops for size then order on Amazon/ASOS to do the same. It's been happening for years now.

Yes, but when was the last time you felt a personal connection with a clothes retailer or had an actually pleasant shopping experience there? I hate clothes shopping because the fitting booths are always under glaring bright lights, I’m confronted with all the negative aspects of my body in a huge up-close mirror, and I have to struggle to get into clothes and out of them. There is an adversarial relationship between me and clothes shops which they are not fixing.