Man, the 80’s were great, weren’t they?
In my opinion, I think that decade was the peak of our civilization.
If you were born in the 60’s or after – it was an incredible time to be alive…
So many amazing things came out of those times – music, movies, innovations – it was just awesome to witness.
One of the most successful innovations of the 1980’s was the American mall – which became a hub for commerce and socializing for the youth of our nation…
Walk into one of these architectural wonders on a weekend in the 80’s and you’d see it packed with teens and young adults – buying clothes or music, eating in the food court, going to the movies or simply just walking around with their pals.
It became a staple of American life…
But it seems malls are going the way of drive-in movie theaters.
The internet changed everything – especially commerce.
Brick and mortar businesses have been hanging on by a thread…
And this economic downturn may have finally driven the last nail in coffin of the American mall.
The economic downturn has hurt a lot of people – but it seems the biggest casualty is business – as with less people buying, more and more companies are going to find themselves without customers.
You’d think just the mom-and-pop stores would suffer – but you’d be wrong – as some of the biggest names in brick-and-mortar commerce are in trouble…
Including two of the biggest names you can think of when you think of the word “mall.”
Macy’s (M) and Nordstrom (JWM) have both had to cut their revenue and profit outlooks recently…
In what some are calling the death nell of the American big box retailer.
Macy’s and Nordstrom’s target audience are higher-end shoppers who are interested in brand-name goods and apparel and tend to avoid places like Walmart (WMT) and Target (TGT).
Of course, this leaves them in a pickle…
As right now, even higher-end shoppers are being more choosey with where they spend their money – and right now – it seems the prices at Walmart and Target are more in line with their budgets.
What’s amazing to me is that nobody really saw this belt-tightening coming…
But even those that predicted it – didn’t see it happening this fast.
The inventory they built up since the pandemic has become nearly impossible to move as both retailers have seen a severe drop in foot traffic…
That means that if they’re going to unload their inventory – they’re going to have to offer deep discounts to get goods moving off their shelves.
While this will change how they order new inventory in the future…
For 2022 at least – they’re too late and why both had to cut their sales and profit outlook for the full year.
This may be why Macy’s has been taking a different approach…
They’ve been opening smaller stores in more populated areas with the thought that if they stay away from the mall and make things more convenient…
More shoppers will come.
It’s a gamble though…
As it’s truly hard to compete with the convenience of Amazon (AMZN).
The good news – for at least Macy’s – is that spending in its Bloomingdale stores – has stayed steady…
Which, makes sense, as the average household income of its customers in the upscale retailer is over $250,000.
The problem is…
Those shoppers also love convenience – and you can find the same brands cheaper online.
Brick and mortar stores are great…
If you need something same day – but if you can wait – the internet is the way to go.
This is why the mall is dying.
Convenience used to mean a quick drive up the street…
Now, it’s a few taps of our fingers.
Trading is the same…
You used to need a broker to get things done – now – all you need is a phone and cell service and you can buy stock from all over the world while sitting in your car.
Some things change – others stay the same…
We may be in uncertain financial times – but GorillaTrades is still finding incredible profit opportunities like never before.
Our system operates on hard data and REAL numbers – so even in a downturn – we find those stocks that are set to return gains…
I’m starting to think we’re recession proof!
I’d love to show you how we do it – so consider become a subscriber to GorillaTrades today.
Let us help you get back in the green!
Until next time…
“Communications is at the heart of e-commerce and community.” – Meg Whitman
