When was the last time you visited a shopping mall? It appears that the icon of American retail has officially started to feel the pinch of shoppers. The convenience of indoor sprawl mixed with every brand retailer known to the public eye may have winked its last time to the typical consumer.
It was reported that Amazon, Walmart and Home Depot are performing solidly. For all the hype about Nordstrom’s and other retailers such as Victoria’ Secret, it appears an ending is about to come sooner than excepted. Today’s shopper has become lean and fiscally conscious in an economy that nearly a decade ago felt an economic collapse. That feeling still resonates with today’s buyers. In fact, large grocery stores are starting to feel the pinch too. Large chains are beginning to take notice with no frills shopping German grocer Aldi’s and Lidl.
While big box stores appear to have stability now, it is safe to assume that the future of shopping mixed with smartphone apps will become a bit more frugal and competitive. Super sized Walmarts are already feeling a decline in individual sales because of marketing designs. A typical consumer may enjoy the low-cost benefits of a particular retail item but complain heavily about how giant Walmart is to locate it. Instead, Walmart appeals to the add-on purchase. It hopes while you are shopping that you will buy something else. However, consumers are beginning to catch on, and it will only be a matter of time before consumers revolt. The supply and demand curve may need reexamining.
Amazon’s performance may be at an all-time high. However, I would argue that postal delivery may do more harm to Amazon as the company’s growth expands. Walmart is in the beginning stages of reducing its storefront size and introduce shipping options to compete with Amazon. Other retailers are catching on to add local and same day deliveries. The future of retail may be reverting back to a time when there were actual home visits such as the milkman and vacuum salesperson. Forget about junk mail and telemarketing calls today. I forecast a new sales vision of door and delivery salesmen combined. The new shopping mall may be actually your home and smart device.
update: JC Penny released in a statement it will close 140 of its stores effective immediately. Sears and Macy’s have closed a significant amount of stores already.