Retail Collapse Is Sign Of Economic Crash
Retail stores are dying a tragic death. They are being choked out by online retail site, most notably, Amazon. With Amazon Prime, you are guaranteed two-day delivery, something that’s closed the gaping hole for many consumers as to why they might remain a brick and mortar shopper. The retail collapse is coming. You might want to prepare to bug out somewhere safe in the event it does happen.
Stores are closing. They are going bankrupt. People are being laid off. And that’s all about to hit the economy in short order.
“This is creating a slow-rolling crisis,” Cohen told Business Insider. “The people that work in retail stores will lose their jobs, then spend less money in retail stores because they are no longer employed. That creates a a cascade of economic challenges.”
The New York Times reports that 89,000 workers have been let go from their jobs since October. And there doesn’t seem to much of an end in sight.
JC Penny is closing 138 stores.
It doesn’t seem as though online warehouses will stand any chance at replenishing the job sector with works. Much of the work is automated and doesn’t require a person to do anything. The sales are all done online. There are no windows. No stores. No place to hand someone a return. No managers floating about. Not even security guards. There is no theft.
Sure, online has its share of issues, but it’s a much more fluid and seamless process. And most crucial, consumers enjoy the experience.
So what happens now?
Retail Collapse Is Economic Collapse
The economy is getting better in terms of stocks. But is it really healthier? Job losses are a terrible burden on an economy. These people without jobs will cease shopping in retail stores because they won’t have income. And then that means more retail stores will sink. And when all of retail crumbles, you have another crash.
Being that our country is already on the precipice of civil war between the left and the right, now is the worst time to have a large portion of people without income and acting out of desperation.
Funneling the unemployed into the system will lead to more poverty. More crime. More violence. Most people are simply not prepared.
Retail Bail Out
Unfortunately, the Left might start pushing bailout proposals for the retail sector. Retail stores see their opportunity at redemption through competing online. They realize their current model is failing. Wal-Mart, for example, is now attempting to compete with Amazon online. They already own Jet.com (acquired a year ago). Now they are in talks to purchase Bonobos for $300 million. Bonobos is an upscale men’s retailer that’s business is primarily online. Wal-Mart owns Modcloth as well, a recent online store purchase.
Though Wal-Mart is remaining competitive, competing with Amazon is entirely another beast. That said, many of the other retailers are in such bad financial shape they can’t likely go about buying online stores, nor, building their own in such a way to be competitive. And that’s where I could see some sort of bailout package being proposed.
Of course, bailing them out would be a hideous solution. But we’ve done it before in other sectors and our country rarely learns from mistakes. I don’t think a bailout changes anything in terms of what’s mentioned above. It just raises the country’s debt and badgers the economy in other ways.
One thing is for sure, we are on the brink of unsettling times.
Amazon has now purchased Whole Foods. This is yet another major indication that a retail collapse is imminent. Having your bug out bag is now more important than ever.
A retail collapse will mean lots of jobless folks which could likely lead to an extreme version of civil unrest. You will want to make darn sure you are ready for that. Anytime people lose jobs en masse, your survival radar should go off. And we can predict this retail collapse with a lot more confidence than we were able to predict the real estate / mortgage collapse. The signs are obvious. Unless people cease ordering online, there will be job losses. It is coming.
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.
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