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Amazon killed the department store - interesting charts and analysis

This is a very interesting read and the data is quite compelling. 

 

http://www.zerohedge.com/news/2017-05-12/how-amazon-killed-department-store-five-charts

 



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Re: Amazon killed the department store - interesting charts and analysis

Interesting indeed and I killed Amazon when their hand came out for sales taxes in  my state that they have 0 presence in.

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Re: Amazon killed the department store - interesting charts and analysis


gdale6 wrote:

Interesting indeed and I killed Amazon when their hand came out for sales taxes in  my state that they have 0 presence in.


To be fair you the consumer were supposed to be paying them anyway Cat Tongue

 

Not that I resembled that remark but it wasn't Amazon's fault on this one.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, TU 4 742, EX 2 702, EQ 8 722, TU 8 757, EX 8 737 (5/13/17)
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Valued Contributor
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Re: Amazon killed the department store - interesting charts and analysis

[ Edited ]

gdale6 wrote:

Interesting indeed and I killed Amazon when their hand came out for sales taxes in  my state that they have 0 presence in.


You are blaming Amazon for something your state legislature did?



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Re: Amazon killed the department store - interesting charts and analysis


MissingCalifornia wrote:

This is a very interesting read and the data is quite compelling. 

 

http://www.zerohedge.com/news/2017-05-12/how-amazon-killed-department-store-five-charts

 


When I was young I preferred going to the store and getting the items I wanted immediately as I was impatient. As I aged, and my health decreased, the task of shopping became more daunting, and my patience increased. Then Amazon and 2 day shipping happened. The sales taxes for me were never an issue, and I would have been willing to even pay extra for the convenience of having it delivered to my door. Now, I very rarely get anything at a brick and mortar store except groceries. I have always hated shopping, but at  one time the ability to get it now led me to the B&M's, but very rarely now unless a major appliance goes out. If it depends on me or people like me, the future of the department stores is dim indeed, and amazon will need warehouses in every small town and several in every city. With online demo's and delivery and setup, I can see a day even major appliances are purchased on Amazon, but have not tried that yet. It is a little sad to see all these B&M's go under, but it is easy to see why. The cost in overhead to display merchandise and provide sales assistance, checkout, etc. is way more than enough to pay for shipping. The floor space, with shelving and a good automated reteival system for items in a warehouse setting is a fraction of that needed when items must be displayed for customer retreival. Add in the cost of losses due to shoplifting, and the B&M's can not compete with an effeciently run warehouse based online shopping system, and never will be able to. Buy stock in Amazon and UPS, and dump the Sears and Belks stock, because soon I fear, there will be few actual stores that you can actually enter.


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Re: Amazon killed the department store - interesting charts and analysis

Only one B&M  has the capability to compete with Amazon in the e-commerce space: Walmart. And they are still far behind in that space. The B&M's, Walmart included, understimated the capabilities of and customer affinity for the medium. While Sears led the way in catalog shopping back in the day, it failed to see the same or greater potential for e-commerce. Of all companies, it should have been the one to anticipate what was coming. It and others are paying the price for placing multiple stores across single metro areas while giving little more than lip service to e-commerce, all the while allowing their products to grow stale. Amazon was nimble and responded to customer demands instead of patting them on the head and telling the customer how it would be. Basically, Amazon took chances and embraced the change while B&M's contracted into their shells and worried about the future of B&M. Heck, half the time I couldn't find my pant size in the store but it's always available somewhere online. Same brand so I know they fit. Why drive 30 minutes one-way to be disappointed when I can sit at home in my undies and wait a day or two for it to come to me?

 

IOW's, it's not so much that Amazon is killing B&M as it is that B&M is killing B&M. B&M has failed to keep pace across the board from service to price to availability to freshness or product and so on. B&M has failed to change with customer preference and demand. B&M has tried to hold on instead of expand. That's not Amazon's fault at all.

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Registered: ‎10-10-2011

Re: Amazon killed the department store - interesting charts and analysis


sarge12 wrote:

MissingCalifornia wrote:

This is a very interesting read and the data is quite compelling. 

 

http://www.zerohedge.com/news/2017-05-12/how-amazon-killed-department-store-five-charts

 


When I was young I preferred going to the store and getting the items I wanted immediately as I was impatient. As I aged, and my health decreased, the task of shopping became more daunting, and my patience increased. Then Amazon and 2 day shipping happened. The sales taxes for me were never an issue, and I would have been willing to even pay extra for the convenience of having it delivered to my door. Now, I very rarely get anything at a brick and mortar store except groceries. I have always hated shopping, but at  one time the ability to get it now led me to the B&M's, but very rarely now unless a major appliance goes out. If it depends on me or people like me, the future of the department stores is dim indeed, and amazon will need warehouses in every small town and several in every city. With online demo's and delivery and setup, I can see a day even major appliances are purchased on Amazon, but have not tried that yet. It is a little sad to see all these B&M's go under, but it is easy to see why. The cost in overhead to display merchandise and provide sales assistance, checkout, etc. is way more than enough to pay for shipping. The floor space, with shelving and a good automated reteival system for items in a warehouse setting is a fraction of that needed when items must be displayed for customer retreival. Add in the cost of losses due to shoplifting, and the B&M's can not compete with an effeciently run warehouse based online shopping system, and never will be able to. Buy stock in Amazon and UPS, and dump the Sears and Belks stock, because soon I fear, there will be few actual stores that you can actually enter.


Excellent points Sarge! 

Back about 15-20 Years ago, there was a small start- up called HomeGrocer.Com. The idea was simple, order your groceries online and have them delivered right to your door. It may have been slightly ahead of its time. Now Amazon Prime, I believe is starting to capitalize on that market as well.

 

But I do recall thinking that UPS stock was definitely the way to go. While Sears ahnd Penneys were definitely considered blue chip stocks at some point, that ship has clearly sailed!


Current Scores 3/2016 Equifax 676 Transunion 697 Experian 648 Goal Scores: 720's accross the board. Gardening Goal: 3/2017
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Re: Amazon killed the department store - interesting charts and analysis


sarge12 wrote:

MissingCalifornia wrote:

This is a very interesting read and the data is quite compelling. 

 

http://www.zerohedge.com/news/2017-05-12/how-amazon-killed-department-store-five-charts

 


When I was young I preferred going to the store and getting the items I wanted immediately as I was impatient. As I aged, and my health decreased, the task of shopping became more daunting, and my patience increased. Then Amazon and 2 day shipping happened. The sales taxes for me were never an issue, and I would have been willing to even pay extra for the convenience of having it delivered to my door. Now, I very rarely get anything at a brick and mortar store except groceries. I have always hated shopping, but at  one time the ability to get it now led me to the B&M's, but very rarely now unless a major appliance goes out. If it depends on me or people like me, the future of the department stores is dim indeed, and amazon will need warehouses in every small town and several in every city. With online demo's and delivery and setup, I can see a day even major appliances are purchased on Amazon, but have not tried that yet. It is a little sad to see all these B&M's go under, but it is easy to see why. The cost in overhead to display merchandise and provide sales assistance, checkout, etc. is way more than enough to pay for shipping. The floor space, with shelving and a good automated reteival system for items in a warehouse setting is a fraction of that needed when items must be displayed for customer retreival. Add in the cost of losses due to shoplifting, and the B&M's can not compete with an effeciently run warehouse based online shopping system, and never will be able to. Buy stock in Amazon and UPS, and dump the Sears and Belks stock, because soon I fear, there will be few actual stores that you can actually enter.


Amazon I still hold a position in and likely will for a long time knowing me heh.  

 

UPS though?  I view the package delivery companies as being the next frontier for competition both from the retailers (Amazon drones or what not) and the ride-sharing services like Uber... I don't know that the fee structure of UPS currently is setup to compete certainly on the local shipping level which I suspect more things will trend towards (giant Amazon warehouses in LA for example).

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, TU 4 742, EX 2 702, EQ 8 722, TU 8 757, EX 8 737 (5/13/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Re: Amazon killed the department store - interesting charts and analysis


Revelate wrote:

sarge12 wrote:

MissingCalifornia wrote:

This is a very interesting read and the data is quite compelling. 

 

http://www.zerohedge.com/news/2017-05-12/how-amazon-killed-department-store-five-charts

 


When I was young I preferred going to the store and getting the items I wanted immediately as I was impatient. As I aged, and my health decreased, the task of shopping became more daunting, and my patience increased. Then Amazon and 2 day shipping happened. The sales taxes for me were never an issue, and I would have been willing to even pay extra for the convenience of having it delivered to my door. Now, I very rarely get anything at a brick and mortar store except groceries. I have always hated shopping, but at  one time the ability to get it now led me to the B&M's, but very rarely now unless a major appliance goes out. If it depends on me or people like me, the future of the department stores is dim indeed, and amazon will need warehouses in every small town and several in every city. With online demo's and delivery and setup, I can see a day even major appliances are purchased on Amazon, but have not tried that yet. It is a little sad to see all these B&M's go under, but it is easy to see why. The cost in overhead to display merchandise and provide sales assistance, checkout, etc. is way more than enough to pay for shipping. The floor space, with shelving and a good automated reteival system for items in a warehouse setting is a fraction of that needed when items must be displayed for customer retreival. Add in the cost of losses due to shoplifting, and the B&M's can not compete with an effeciently run warehouse based online shopping system, and never will be able to. Buy stock in Amazon and UPS, and dump the Sears and Belks stock, because soon I fear, there will be few actual stores that you can actually enter.


Amazon I still hold a position in and likely will for a long time knowing me heh.  

 

UPS though?  I view the package delivery companies as being the next frontier for competition both from the retailers (Amazon drones or what not) and the ride-sharing services like Uber... I don't know that the fee structure of UPS currently is setup to compete certainly on the local shipping level which I suspect more things will trend towards (giant Amazon warehouses in LA for example).

 


Revelate, would you mind extrapolating on your thoughts?  I always figured that with the advent of internet shoppin in the last 10+ years, somebody HAS to deliver these products to our front doors.  I don't follow you on why you think UPS is not theway to go???  If you don't mind I'd like to pick your thougts a bit.


Current Scores 3/2016 Equifax 676 Transunion 697 Experian 648 Goal Scores: 720's accross the board. Gardening Goal: 3/2017
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Re: Amazon killed the department store - interesting charts and analysis


grillandwinemaster wrote:

Revelate wrote:

sarge12 wrote:

MissingCalifornia wrote:

This is a very interesting read and the data is quite compelling. 

 

http://www.zerohedge.com/news/2017-05-12/how-amazon-killed-department-store-five-charts

 


When I was young I preferred going to the store and getting the items I wanted immediately as I was impatient. As I aged, and my health decreased, the task of shopping became more daunting, and my patience increased. Then Amazon and 2 day shipping happened. The sales taxes for me were never an issue, and I would have been willing to even pay extra for the convenience of having it delivered to my door. Now, I very rarely get anything at a brick and mortar store except groceries. I have always hated shopping, but at  one time the ability to get it now led me to the B&M's, but very rarely now unless a major appliance goes out. If it depends on me or people like me, the future of the department stores is dim indeed, and amazon will need warehouses in every small town and several in every city. With online demo's and delivery and setup, I can see a day even major appliances are purchased on Amazon, but have not tried that yet. It is a little sad to see all these B&M's go under, but it is easy to see why. The cost in overhead to display merchandise and provide sales assistance, checkout, etc. is way more than enough to pay for shipping. The floor space, with shelving and a good automated reteival system for items in a warehouse setting is a fraction of that needed when items must be displayed for customer retreival. Add in the cost of losses due to shoplifting, and the B&M's can not compete with an effeciently run warehouse based online shopping system, and never will be able to. Buy stock in Amazon and UPS, and dump the Sears and Belks stock, because soon I fear, there will be few actual stores that you can actually enter.


Amazon I still hold a position in and likely will for a long time knowing me heh.  

 

UPS though?  I view the package delivery companies as being the next frontier for competition both from the retailers (Amazon drones or what not) and the ride-sharing services like Uber... I don't know that the fee structure of UPS currently is setup to compete certainly on the local shipping level which I suspect more things will trend towards (giant Amazon warehouses in LA for example).

 


Revelate, would you mind extrapolating on your thoughts?  I always figured that with the advent of internet shoppin in the last 10+ years, somebody HAS to deliver these products to our front doors.  I don't follow you on why you think UPS is not theway to go???  If you don't mind I'd like to pick your thougts a bit.


Amazon and Uber and others would all love to take UPS's business either from a cost-optimization strat or a new revenue opportunity.

 

The massive online retailers will likely keep transitioning to simply putting massive scale warehouses close to their customers, and suddenly shipping becomes a local concern for the 90% of the current online market.

 

I guess the major question is which is likely to occur faster: the continued transition to online shopping which sort of seems fait accompli at this point, or competitors springing up to challenge UPS et al. in the local markets.  The vast cargo fleet that companies like UPS and Fedex operate will likely become a liability as their purpose would be overnight or second day delivery for items that aren't common enough to stock locally.

 

Ultimately I think either the sharing economy or outright technical advancement (lot of hurdles to getting drones functional in someplace like Los Angeles) will severely erode UPS et al.'s market share.  

 

My thoughts anyway; to be fair I suspect things are going to be sort of status quo for a while but I am a long term growth investor and I just don't think UPS will make the grade on that... YMMV as I'm not a professional investor.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, TU 4 742, EX 2 702, EQ 8 722, TU 8 757, EX 8 737 (5/13/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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