Why is retail doing so badly in the US

[MacInTO]

The US has a retail business model built on slave wages. It becomes difficult for me to single out Amazon, although I acknowledge Amazon is likely too big and powerful and should be subject to anti-trust laws, if there is such a thing anymore… 🤔

Corporations often give donations to the ruling party (parties) and this gives them a free pass to do as they please.

On a similar note to the slave wage system is the hospitality industry - primarily in the US and Canada - where some must rely on tips to make a fair wage rather than businesses paying employees a fair wage. I think if tips did not exist, many of these businesses would not be able to survive.

 

[Huntn]

Oh definitely. But my financial situation is not going to survive to going an hour out of my way to pay 2x for a product just so I can avoid Amazon.

All so that these retail stores can hire a tiny # of people (they never re-hired to normal levels after Covid) - overwork and underpay them - trying to offset costs by 2x'ing their product costs.

If these companies would hire more employees, lower product cost - they might see more traffic. As it is, I see more and more people buying Amazon to avoid the growing lines (for the privilege of giving retail stores money), horrible paid parking, and ~2x product costs. Then being begged to apply for a CC or install that retail store's app for a tiny discount...

It's not great all around.

I definitely have reduced my spending significantly because of the above.

Credit is good, but getting everyone on credit cards, especially when struggling financially is just a recipe for dept, part of the Captialist End Game.

 

[BigMcGuire]

Credit is good, but getting everyone on credit cards, especially when struggling financially is just a recipe for dept, part of the Captialist End Game.

Where I live, Northern California, most places don't take cash - especially the closer you get to SF.

 

[TechRunner]

Where I live, Northern California, most places don't take cash - especially the closer you get to SF.

Here in SW Florida several small businesses I frequent penalize you for not using cash by tacking on a payment processing surcharge. I never carry cash, so I'm stuck paying it. I just use these places less often.

 

[adrianlondon]

The UK used to do this (different prices for cash vs card), but I believe it stopped some time in the 1990s.

I remember TCR (Tottenham Court Road) was full of electronics shops with dual pricing.

Googling, it seems dual-pricing was only officially banned in the UK from 2018!

 

[Apple fanboy]

Where I live, Northern California, most places don't take cash - especially the closer you get to SF.

Debit cards work just the same.

 

[Apple fanboy]

Credit is good, but getting everyone on credit cards, especially when struggling financially is just a recipe for dept, part of the Captialist End Game.

Never owned a credit card. Never will.

 

[Scepticalscribe]

Corporations often give donations to the ruling party (parties) and this gives them a free pass to do as they please.

This is all too unfortunately true.

On a similar note to the slave wage system is the hospitality industry - primarily in the US and Canada - where some must rely on tips to make a fair wage rather than businesses paying employees a fair wage. I think if tips did not exist, many of these businesses would not be able to survive.

If a business cannot afford to pay their staff a fair wage, to my mind, they don't deserve to survive.

There is neither an ethical - nor a financial - justification for "slave wages".

More to the point, given the obscene profits and grotesque bonuses companies such as Amazon (to take an obvious example), pay their shareholders, it is difficult to (credibly) make the argument that they cannot afford to pay their staff a fair wage, or treat them properly and with respect.

 

[throAU]

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

Economy is in the toilet, labour costs are sky high and internet shopping from china exists?

 

[turbineseaplane]

Never owned a credit card. Never will.

If you pay it off all the time, there's no downside and by not having one you're foregoing often really great benefits.

Many useful things like additional insurance plans, direct cash back, airline miles, on and on.

I've been doing that for decades.

All the perks and never once run an unpaid balance.

It's honestly the smart way to go as it maintains a very high credit score and track record, which is a good thing to have in case ones needs change.

 

[adrianlondon]

I always use credit rather than debit cards*, as credit cards come with purchase insurance and a simple "charge back" process if it all goes wrong.

However, I pay my CC off using direct debit for the full amount each month, so have not ever actually used one for credit.

* I use debit cards for ATM withdrawals on the rare occasion that's necessary.

 

[Apple fanboy]

If you pay it off all the time, there's no downside and by not having one you're foregoing often really great benefits.

Many useful things like additional insurance plans, direct cash back, airline miles, on and on.

I've been doing that for decades.

All the perks and never once run an unpaid balance.

It's honestly the smart way to go as it maintains a very high credit score and track record, which is a good thing to have in case ones needs change.

lol. Nearer the end of life than the start and I’ve never checked my credit score yet.

Never a lender or a borrower be as the saying goes.

 

[adrianlondon]

Never a lender or a borrower be as the saying goes.

That's fine unless you want to buy a house or apartment before you've saved up enough to pay cash.

It can also make it tricky to start a business.

 

[Apple fanboy]

That's fine unless you want to buy a house or apartment before you've saved up enough to pay cash.

It can also make it tricky to start a business.

Mortgages being the exception. I have about 2 years left but intend to clear it much sooner than that.

 

[Huntn]

Never owned a credit card. Never will.

Now that’s just shocking! 🙃

 

[Apple fanboy]

Now that’s just shocking! 🙃

I spend money very infrequently. I rarely go out for drinks or food. I don’t buy clothes more years than I do.
No more than a couple of days away each year and always in the UK these days.

 

[BSDnostalgia]

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 same in many countries. Rents for shops go up, employees who are above average can find better jobs, so, the employees left in stores aren't always the sharpest. Shops close and get turned into office space. Sure, part of it is
Amazon, another part is just upward mobility. Capable staff don't have to work in retail shops like they once did if all they had was an eighth-grade education. It is an actual problem, though, because retail shops were one type of interpersonal communication that is fading.

 

[philipma1957]

If you pay it off all the time, there's no downside and by not having one you're foregoing often really great benefits.

Many useful things like additional insurance plans, direct cash back, airline miles, on and on.

I've been doing that for decades.

All the perks and never once run an unpaid balance.

It's honestly the smart way to go as it maintains a very high credit score and track record, which is a good thing to have in case ones needs change.

I pay off on time and have gotten thousands of dollars in rebates. but lately more people charge for using cards.

as to why retail stores suffer ebay and amazon sell the same item 10 to 20% cheaper .

 

[boswald]

Here in SW Florida several small businesses I frequent penalize you for not using cash by tacking on a payment processing surcharge. I never carry cash, so I'm stuck paying it. I just use these places less often.

Same up here in central Florida. I see the "convenience charge" disclaimer all over the place. It's like they're trying to make you feel bad for not carrying cash. I haven't carried cash in, God, I don't know how many years, so I just suck it up and pay it too.

 

[Macky-Mac]

The UK used to do this (different prices for cash vs card), but I believe it stopped some time in the 1990s.

I remember TCR (Tottenham Court Road) was full of electronics shops with dual pricing.

Googling, it seems dual-pricing was only officially banned in the UK from 2018!

We used to have dual pricing in my area but mostly the payment processing fee is now included in the standard price. The current trend is to only accept payment by a card, either debit or credit.

 

[BSDnostalgia]

Same up here in central Florida. I see the "convenience charge" disclaimer all over the place. It's like they're trying to make you feel bad for not carrying cash.

They may be penalizing you for putting your purchase "on the books".

 

[philipma1957]

Well I try to carry the right card for where I am shoping. My discover card is doing 5% on home improvement like Lowes or home depot and also restaurants . So I will use it up til July 1. My chase card is doing amazon til July 1.

So I use them at the right stores as much as I can I then stack points and wait for them to sell apple gift cards at 10 or 5 or 15% off. I have been playing the bonus point game since 1987 . A lot of $$ has come my way. I really shop hard and steady for bargains as much as I can.