Media Lie Exposed: Retail Shopping Up, Retail Stores Down--Why?

Media Lie Exposed: Retail Shopping Up, Retail Stores Down–Why?

Craig Huey Economics 2 Comments

Why are so many retail stores closing … and jobs being lost?

This past year, retail shopping was up 3%.

Online shopping increased by 17%.

The media—as usual—is not telling you the truth.

I own an ad agency (79 agency award, international clients) and these media lies are so transparent.

Yet retail companies are closing stores all over the country!

Let’s look at a few of them closing across the country:

Brick and Mortar v. Online (Credit: Online Market Services)

  • Macy’s: 68 stores
  • Sears and Kmart: 150 stores
  • Aéropostale: 154
  • American Eagle: 150 over three years
  • Chicos: 120 stores
  • The Children’s Place: 200 between fiscal 2015 and 2017
  • Finish Line: 150
  • Hancock Fabrics: 255/all stores
  • Men’s Warehouse/Jos. A. Bank: 250
  • Office Depot/Office Max: 400
  • Sears & Kmart: 142
  • Sports Authority: 140/all stores
  • Walgreens: 200 stores
  • Walmart: 154 stores
  • Wolverine World Wide: 100 stores

The media claims that it’s because of online competition.

Online competition is part of the reason. But it’s much more. Despite online competition, retail sales are up, not down.

Why else are retail stores closing in record numbers?

  • Bad management
  • Bad marketing
  • Poor skills or tools to respond to the rise of online marketing
  • A decreasing sense of safety for customers at shopping malls

Larger factors are also decimating big box stores and small businesses, but the media ignore them:

  1. High and increasing rental costs, especially in California, New York, and other high-tax states … a direct result of excessive local and state taxes, plus unnecessary regulations.
  2. Massive federal and state regulatory burdens, including Obamacare
  3. Forced minimum wage hikes … causing job losses and poorer service with fewer employees and more automation.

Less government intervention and more opportunity for competition and innovation will help brick and mortar stores bounce back from their slugging, sagging sales.

Companies like JC Penny, which move headquarters to low-tax, less-regulated states like Texas have already improved their economic outlook dramatically.

Smart retailers also have online ordering for their stores.

And it pays off.

69% of on-line shoppers purchased more once their picked up their on-line purchases at a physical store.

In fact, online companies are now opening retail stores of their own. Amazon.com has begun opening physical stores, including a bookstore.

Other online stores that are opening physical stores include:

  • Google
  • Gemi
  • Warby Parker
  • Bonobos
  • AHA Front
  • Pintrill
  • The Arrivals

Tell me what you think. Email me at [email protected].

Comments 2

  1. I agree..it’s all about the business climate that the state and federal set with regulations and taxes. They are killing the business climate which in turn causes companies to shut down..especially mom and pop stores, and fatally killing jobs.

    I hope Trump can make sense of this and stop all the regulation and get businesses back in CA and then the jobless rate will go accurately down..and not because those without a job just stop looking for work.

  2. Craig, did you see “Moonbeam” Brown with his charts yesterday on the news? What an idiot. He has NO idea that he and his demoncrats are causing most of this downturn with the oppressive taxation, MANDATORY minimum wage, etc, etc. All of Sacramento is run by DEMONCRATS, just like Chicago is ALL DEMONCRATS, and they wonder what the problem is??? “They” have nothing between their ears, except GREED.

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