An Analysis Of The Truth Of Large-Scale Mass Trading In America

According to the world clothing shoes and hats net, many people have heard about the increasingly intense retail sales of American entities.

Since 2017, 2880 retail outlets have been closed in the United States, and 1153 stores have been closed at the same time in 2016.

According to the data, about 8640 stores in the United States will be closed in 2017.

This will be 6200 more than the peak of the US recession in 2008, that is, the largest retail sale in the history of the United States for many years.

。

Instead of closing stores, in the first 4 months of this year, the number of retailers applying for bankruptcy protection in the United States exceeded that of 2016.

This phenomenon has aroused much discussion in China.

01

What have we heard about the reasons for closing stores?

It is generally believed that the rise of online shopping is the most important reason.

From 2010 to 2016,

Sales in North America increased by 5 times, from $16 billion to $80 billion, that is, the growth of three Sears stores in six years.

In 2016, the penetration rate of American department stores was about 18%, which was only 7% in 2011.

Brand clothing store has an electricity penetration of 19%, which was 13% in 2011.

Xu Xin, today's capital, said in a speech that 20% is a very magical number in the evolution of things. After reaching 20%, the impact of new things on old things is beginning to show.

For example, in addition to its own business and management problems, the rise of online shopping is one of the important reasons for Sears's decline. The Gamestop stores such as digital retail belong to this category.

The collapse of the solid shopping mall bubble is another important reason.

Between 1970 and 2015, retailers were too optimistic to expand new stores everywhere, resulting in the growth of shopping malls in the United States at a rate of two times that of the population.

By now, the sales volume of scarce stream of people can not support the performance of too many physical stores.

For example, the clothing industry Gap, digital retail RadioShack, Messi department store, J.C.Penney and other customs stores belong to this type.

02

Actually, there are other reasons.

But these claims do not account for what the Costa brothers have noticed: some retailers are expanding against the trend in the fierce tide of closing shop. For example, Dollar General is expected to add more than 1000 new stores this year.

A list compiled by IHL Consulting Group, a retail consultancy, lists 22 retailers that plan to increase the number of stores, such as Dollar Tree, TJ Maxx, Ross Stores, Hobby Lobby, Hobby, and so on.

The total number of stores expected to increase this year is around 3000.

A little analysis will reveal their common features: either discount stores or discount chains.

Is it purely coincidental?

By combining their expansion with department stores' customs, we will find another reality: the demand of American consumers has declined greatly.

American consumers have reduced their consumption of clothing, daily necessities and automobiles.

Parity

Brands and e-commerce brands are popular. Online shopping or discount stores and discount supermarket chains have become what Americans are passionate about nowadays, while department stores like Messi and Sears are no longer popular.

03

Why is that?

During the 8 years of Obama's term, the US economy has not reached the level of 3% over the whole year, but the economic growth in the first quarter of this year is only 0.7%, the lowest level in three years.

At least for now, Trump's taking office has not changed the trend of the economy.

The problem of income inequality has deteriorated over the past 10 years in addition to the high unemployment rate since the "financial tsunami" in 2007.

The rich are getting richer and the poor are still poor.

During the period, in order to get out of the financial crisis, the government favoured the rich in terms of tax and income redistribution policy. Income and wealth were highly concentrated on high-income groups, while the wages of the poor remained stagnant.

Although the unemployment rate dropped to 4.4% in April in the first quarter of this year, it reached a low of 10 years, but the salary growth still failed to reach the expected level.

According to a statistical report by UBS, 3/4 of the US citizens are reduced to "moonlight clan" and half of them are unable to get 500 dollars in emergency funds.

Excessive consumption has overdrawn the consumption potential of the American people.

Other data show that the current situation of US consumer bankruptcy is the most serious since the end of the recession.

As many as 27% of student loans are in default, and this rate may continue to rise.

The squeeze effect of tuition loan and Obama's medical reform on the amount of personal discretionary funds can indeed affect people's consumption.

{page_break}

The combined result of these conditions is that UBS's statistics show that about 2/3 of low income consumers and 1/3 of middle-income consumers say that their income is not enough to cover their daily expenses or occasionally pay daily expenses.

It is already a very obvious phenomenon that the general American people's consumption power and consumption will become weaker.

Even the cars that Americans love are not spared.

In March, 7 of the top 8 US auto makers failed to meet their expectations.

The price of used cars is falling at an "unusual" speed. The average price of second-hand cars in the US market is expected to decline another 50% in the next few years. The performance of the auto industry is also the worst since the end of the economic crisis.

It is not difficult to understand why American consumers are increasingly attracted by discount stores, discount chain supermarkets and electric providers.

The popularity of offline discount chains far exceeds the imagination of opera brother.

In June 2016, the sales of Dollar Tree and Dollar General in the "one dollar" chain set a record high, and they managed to grab considerable market share from the retail giants WAL-MART and other retailers.

Dollar Tree net income increased more than doubled to $171 million 600 thousand; Dollar General opened 13000 stores and sold over 100 billion annually.

Even WAL-MART, known for its low price, has become a loser.

WAL-MART has opened 102 community stores Walmart Express since 2011, but announced the closure of these stores in 2016. Eventually, Dollar General bought 41 Walmart Express stores closed.

Someone commented that "Dollar General encircled Walmart Express".

Against this background, low price has become a drama that American retailers can't escape.

After selling all the stocks at the beginning of, Buffett launched a large-scale "price war" across the United States, with a battle against death. It aimed not only at the discount chains such as Dollar General, Dollar Tree, but also by Amazon.

Although Trump's new deal has stimulated the US economic soft data such as consumer confidence index, ISM manufacturing and non manufacturing index and NFIB small business confidence index, it has climbed to a record high.

But Goldman also points out that, as the growth of employment and productivity is close to the limit, the possibility of a recession in the middle period of the US economy is indeed on the rise.

For a long time, discount stores, discount chain supermarkets, electricity providers, especially discount providers, will occupy the winners' position in the new retail environment of the US economic environment.

More interesting reports, please pay attention to the world clothing shoes and hats net.