{"id":34072,"date":"2016-03-08T17:27:18","date_gmt":"2016-03-08T22:27:18","guid":{"rendered":"http:\/\/www.technologyinvestor.com\/?p=34072"},"modified":"2016-03-08T17:27:18","modified_gmt":"2016-03-08T22:27:18","slug":"bricks-and-mortar-retail-is-dead-with-few-exceptions","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=34072","title":{"rendered":"Bricks and mortar retail is dead, with few exceptions."},"content":{"rendered":"

Retail is dead. Or maybe not.<\/p>\n

We’re in Palm Desert, 100 miles east of LA. Everything here is big box stores. That’s how everyone shops. That’s very different to New York City where I live.<\/p>\n

So I figured I’d spend an afternoon checking out the stores, which include:<\/p>\n

\"TJMaxx\"<\/a> \"SportsAuthority\"<\/a> \"BedBath&Beyond\"<\/a> \"Marshalls\"<\/a> \"Target\"<\/a><\/p>\n

The first thing I learned: Most of the clothing — which is most of what they sell — is horribly displayed, viz endless racks:<\/p>\n

\"StockRacks\"<\/a><\/p>\n

The second thing I learned: There’s just too much of everything. Too much of it smacks of designer desperation. Who ever would buy this stuff?<\/p>\n

\"SaltCrystal\"<\/a> \"YourFridge\"<\/a> \"FanFriendly\"<\/a> \"WallPhotos\"<\/a><\/p>\n

The third thing I learned: There aren’t many customers. Most of the stores are empty.<\/p>\n

One store that did impress: Target: Their stuff was interesting, well-laid out and there seemed to be plenty of it.<\/p>\n

I read their latest Earnings Call (click here<\/strong><\/a>). I had heard how “data-driven” Target was and the conference call confirms it. They have an impressive management team. And their stock chart reflects that:<\/p>\n

\"TargetStockPriceChart\"<\/a><\/p>\n

Their P\/E ratio is 15 and their yield is 2.8%. It’s no bargain, but it did somewhat restore my faith in that someone was doing OK in big box retailing.<\/p>\n

The general “we have everything junk” are depressing. The specialized stores are at least interesting to shop — like BedBath&Beyond and Sports Authority. They have some stuff that’s useful.<\/p>\n

It’s interesting how these stores are pushing themselves online. It should eventually work for them. It’ll be slow since few of their customers seem “computer literate.” They seem poor, have plenty of time on their hands and thought it was fun to rummage around the clothing junk on display in places like Marshalls and TJMaxx.<\/p>\n

I’m also depressed for big developers like Westfield who have a huge (empty) mall just down the road with anchor tenant stores like:<\/p>\n

\"Macys\"<\/a><\/p>\n

Also, empty of customers, a zoo of cluttered, junky merchandise. And totally illogical layout.<\/p>\n

The desperation of mall-based retailing is reflected in some utterly weird tenants in the Westfield Mall:<\/p>\n

\"CharmingCharlie\"<\/a> \"Happy\"<\/a><\/p>\n

And my absolute favorite tenant: What are they doing selling their stuff when the outside temperate (we are in a desert) is 91 degrees?<\/p>\n

\u00a0\"MinnetonkaMoccasins\"<\/a><\/p>\n

The only booming store in the Westfield shopping center was the nail salon.<\/p>\n

\"NailSalon\"<\/a><\/p>\n

When you too are retired, you can spend your afternoons getting your nails down. Hands and feet.<\/p>\n

As I’ve written before, we’re\u00a0 in The Experience Economy.\u00a0 You don’t own anything — like the big players, Uber, Airbnb, etc. You just get to write about your experiences on Facebook (FB).<\/p>\n

\"FacebookMax\"<\/a><\/p>\n

Another great video<\/strong><\/span>
\n\"MittSavesTheDay\"<\/a>
\nTo watch it, click here.<\/a><\/strong><\/p>\n

What role for Chris Christie after endorsing Trump?<\/strong><\/span> My favorite cartoon:<\/p>\n

\"DogWalker\"<\/a><\/p>\n

Evangelicals comment on Apple<\/strong><\/span><\/p>\n

\"Appleconditions\"<\/a>
\n\"HarryNewton\"<\/a>
\nHarry Newton who’ll stick with Amazon for his buying. They have the stuff he wants. They don’t charge me shipping. They have it in my size. And I don’t have to trample through all the clothes fallen onto the floor from over-stuffed racks and wait in line for a checkout clerk, who asks me “Did you find everything you wanted?<\/em>”\u00a0 I restrained myself from answering, “I did want two fix foot blondes and bottle of Mazola.<\/em>” Sadly, that joke doesn’t fly on the West Coast, since nobody knows what Mazola is.<\/p>\n

From TechCrunch:<\/p>\n

Uber, the world\u2019s largest taxi company, owns no vehicles. Facebook, the world\u2019s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world\u2019s largest accommodation provider, owns no real estate.<\/p>\n

VZ continues to do well.<\/p>\n