Retail meltdown: Which chains are closing stores in 2016?

[CashMan]

You can work full time @ Wallmart and still qualify for food stamps.

I agree and I do not like it, but this is capitalism.

 

[BigStar]

I agree and I do not like it, but this is capitalism.

Unregulated more so is the problem Got fam in WV and feel the same way; limited job opps to begin with in many of these "lost" rural towns.

 

[TheCount]

If you were to ask me which one is going to be around longer as their present business model?

I'd pick Wal-Mart over Amazon.

lol, that'd be a terrible bet.

Amazon is a technology company that already dwarfs Wal-Mart in terms of value.

 

[Bill Wooten]

lol, that'd be a terrible bet.

Amazon is a technology company that already dwarfs Wal-Mart in terms of value.

Funny that anyone partnering with Walmart for technology solutions is not allowed to use Amazon's AWS cloud computing services.

 

[MichaelWinicki]

lol, that'd be a terrible bet.

Amazon is a technology company that already dwarfs Wal-Mart in terms of value.

It's not about value.

It's about sales.

WalMart is not only much larger in terms of revenue, it's also hugely more profitable.

Amazon has more "value" and typing that is causing me to cough to even type that is because you have a lot of folks who buy stock based on hype more than earnings.

Peel away the Amazon "onion" and you find the most profitable part of the business is the backend, i.e. technology infrastructure– the "store" business is just shifting dollars without keeping much of it.

 

[DallasDomination]

I'm surprised Walmart hasn't really tried to compete with Amazon for online sales. To do that, they need to work on their direct to consumer distribution.

Have you ever done an online/pick up at store order at Walmart before?

It's like talking with 6 year old kids from another country. I actually feel bad for the employees there. It's not like it's their fault. There's probably zero training involved. ..

 

[TheCount]

It's not about value.

It's about sales.

WalMart is not only much larger in terms of revenue, it's also hugely more profitable.

Amazon has more "value" and typing that is causing me to cough to even type that is because you have a lot of folks who buy stock based on hype more than earnings.

Peel away the Amazon "onion" and you find the most profitable part of the business is the backend, i.e. technology infrastructure– the "store" business is just shifting dollars without keeping much of it.

That's the difference between a technology company and a retailer. Amazon's value is not tied to profits, Wal-Mart's is.

Wal-Mart is going to have to give up some of that profit in order to stay in the race with Amazon if they want to try and be competitive.

In terms of changing their strategy by this time next year, Amazon is always changing their strategy - something they can afford to do because they aren't a retailer. Wal-Mart changing their strategy is a fundamental shift. That's why I wouldn't take your bet, Amazon will keep doing what they've been doing, it's Wal-Mart that needs to make a shift.

 

[Yakuza Rich]

Retail brick and mortar business is a tricky thing. I tend to think we'll see the places like Walmart shut locations down while Target will likely continue to thrive. There's still a place for these stores, it just may not be as big of a market as it once was...but big enough that these companies won't get out of it completely because of the fear of their competitors taking up that market and make profit off of it.

I don't see fast food chains closing. They've been talking about McDonald's and Burger King shutting down almost completely for 30 years.

In the end, it's really about some wealthy people that are making a ton of money that are overreacting to any downturn in profits and any remote threat of a downturn in profits. It's understandable because nobody wants to be another Sports Authority or another Sears. But, it's about adjusting your processes to find new sales opportunities, to sustain your core sales and to find ways to cut costs. The brick and mortar retail stores that do that will continue to thrive and the companies that don't will close.

The difficult part is the shareholders/ownership may not have the patience to let those changes happen.





YR

 

[MichaelWinicki]

That's the difference between a technology company and a retailer. Amazon's value is not tied to profits, Wal-Mart's is.

Wal-Mart is going to have to give up some of that profit in order to stay in the race with Amazon if they want to try and be competitive.

In terms of changing their strategy by this time next year, Amazon is always changing their strategy - something they can afford to do because they aren't a retailer. Wal-Mart changing their strategy is a fundamental shift. That's why I wouldn't take your bet, Amazon will keep doing what they've been doing, it's Wal-Mart that needs to make a shift.

Amazon can keep doing what they're doing and largely not make money with most of it.

Eventually profits will need to be made.

 

[MichaelWinicki]

Retail brick and mortar business is a tricky thing. I tend to think we'll see the places like Walmart shut locations down while Target will likely continue to thrive. There's still a place for these stores, it just may not be as big of a market as it once was...but big enough that these companies won't get out of it completely because of the fear of their competitors taking up that market and make profit off of it.

I don't see fast food chains closing. They've been talking about McDonald's and Burger King shutting down almost completely for 30 years.

In the end, it's really about some wealthy people that are making a ton of money that are overreacting to any downturn in profits and any remote threat of a downturn in profits. It's understandable because nobody wants to be another Sports Authority or another Sears. But, it's about adjusting your processes to find new sales opportunities, to sustain your core sales and to find ways to cut costs. The brick and mortar retail stores that do that will continue to thrive and the companies that don't will close.

The difficult part is the shareholders/ownership may not have the patience to let those changes happen.





YR

The thing is there's a place in the market for a Sears... Just not as its current configuration.

Focus on three things... Appliances, Tools & Outdoor equipment.

 

[Yakuza Rich]

The thing is there's a place in the market for a Sears... Just not as its current configuration.

Focus on three things... Appliances, Tools & Outdoor equipment.

I had read that the big thing that screwed up Sears was when they started to offer credit.

Down here in Florida I think we are starting to see a resurgence in ACE Hardware stores. While Home Depot and Lowe's has just about everything you need, the expertise at the ACE Hardware is better and therefore customers are only making 1 trip to get everything they need instead of 3 or 4 trips because HD and Lowe's have lower quality of expertise.

It's easy for me to say that you have to value your workers because I am one of those workers. But, we've seen these companies try to continue to get by with low payrolls and they end up getting what they pay for. They'll get some immediate success (although they probably reached their peak success 10-20 years ago) and then they slowly decline in stock prices, revenues and EBITDA and end up selling before they lay-off a bunch of people, shut down a ton of locations and they only get back to their old form thru a major overhaul of the company.

I think a big part of the issue is that the most intelligent college grads, the MIT and Ivy League grads are usually going into banking. That's where the money is and the banks are smart enough to figure out that while you will have to spend top dollar for these graduates, it will pay off more over the long haul.




YR

 

[MichaelWinicki]

I had read that the big thing that screwed up Sears was when they started to offer credit.

Down here in Florida I think we are starting to see a resurgence in ACE Hardware stores. While Home Depot and Lowe's has just about everything you need, the expertise at the ACE Hardware is better and therefore customers are only making 1 trip to get everything they need instead of 3 or 4 trips because HD and Lowe's have lower quality of expertise.

It's easy for me to say that you have to value your workers because I am one of those workers. But, we've seen these companies try to continue to get by with low payrolls and they end up getting what they pay for. They'll get some immediate success (although they probably reached their peak success 10-20 years ago) and then they slowly decline in stock prices, revenues and EBITDA and end up selling before they lay-off a bunch of people, shut down a ton of locations and they only get back to their old form thru a major overhaul of the company.

I think a big part of the issue is that the most intelligent college grads, the MIT and Ivy League grads are usually going into banking. That's where the money is and the banks are smart enough to figure out that while you will have to spend top dollar for these graduates, it will pay off more over the long haul.




YR

Yep, we've got a chain of "Value Hardware" stores in this part of the world that is affliated with ACE... And I almost universally go to see those folks first instead of wandering around the Home Depot stadium and not find what I'm looking for.

 

[YosemiteSam]

Have you ever done an online/pick up at store order at Walmart before?

It's like talking with 6 year old kids from another country. I actually feel bad for the employees there. It's not like it's their fault. There's probably zero training involved. ..

Nope, you walk in the closest Walmart to my house and checkout is a 45 minute ordeal. Yeah, no. I don't go there for anything.

 

[Dallas_Cowboys50]

Have you ever done an online/pick up at store order at Walmart before?

It's like talking with 6 year old kids from another country. I actually feel bad for the employees there. It's not like it's their fault. There's probably zero training involved. ..

you talkin bout the site to store thing? Ive never had any problems with it whatsoever.....

 

[big dog cowboy]

Yep, we've got a chain of "Value Hardware" stores in this part of the world that is affliated with ACE... And I almost universally go to see those folks first instead of wandering around the Home Depot stadium and not find what I'm looking for.

Last time I went to Home Depot just 2 miles from my house, I actually had an employee tell me "we don't carry those in our store but the west location does." I'm not driving almost 20 minutes one way for something that trival so I looked at the guy sideways and then he said, "my advice? I'd go to the Menards down the street."

 

[rynochop]

Nope, you walk in the closest Walmart to my house and checkout is a 45 minute ordeal. Yeah, no. I don't go there for anything.

You can use the self checkout and be done in two minutes if your just picking up a few things. There's very rarely any type of wait

 

[YosemiteSam]

You can use the self checkout and be done in two minutes if your just picking up a few things. There's very rarely any type of wait

Not at that Walmart. If I buy anything from them, it's online. I just can't deal with the mess that is that store.

 

[BrAinPaiNt]

I leave for work a little earlier than normal when I need to get something from walmart.

It is much better in the cold months but even during the summer it is pretty easy to get in and out without much hassle. It is never crowded other than some stock people. Often times that early 6:00 to 7:00 there is only one cashier open and even with just that one there is rarely a wait and if there is I can always do the self checkout.

But only early in the morning. If the wife wants to go later in the day or during the weekend...it is a beating that I would rather not do at all.

 

[BrAinPaiNt]

We still have a couple of K-marts around in WV.

Seems odd to see them still open.

Hated going into K-Mart.

Did not get in there very often but without fail every time I did I got a bad headache. Must be some kind of cleaner for their floors or something in their air system.

 

[Bill Wooten]

Was just in St. Thomas and saw a K-Mart for the first time in close to 10 years. And it sold liquor!