Quote:
Originally Posted by Neednothing
Let's see what the earnings call on the 18th reports.
While its true that trying on clothes is a benefit of being in the store shopping I'm not so sure that it is truly worth making the trip all for the sake of trying on the clothing. A fitted suit is certainly a specific instance where this is useful, but this doesn't quite justify in itself the existence of these larger stores who really don't know what they want to be when they grow up. They're either empty with little inventory and selection, or like Sears, overpacked without any method of organization or merchandising.
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I disagree with your statement and the example of Sears is a horrible one, they are dying a slow death because they did not keep up with the trends, there are many retailers that are also suffering the same fate but you find others that are replacing them.
The total square footage of retail in the US and Canada has increased, if your statement of people are now buying online and no longer shopping in the traditional brick and motor stores, them why is there so much expansion in retail the last few years, no one would invest in a lost industry, are they just plain idiots. I would state otherwise, since most people like to try clothes to see if it suites them, like a pair of jeans, a shirt (to tight, too loose), etc… My wife and I are one of these individuals, we do buy online, but it is mostly for our kids and items from a brand or designer that I already own and know the fit but can easily return to a store with no extra shipping costs.
If you look at Ottawa as one example, the Rideau Centre is expanding, so did Bayshore, a new outlet in Kanata called Tanger, expansion to Promenade (took former office space for Simons), the Train Yard which are still adding / expanding.
It is the same across the country, every major mall is expanding / renovating by adding extra square footage. For example, Yorkdale in Toronto, Chinook in Calgary, Square One in Mississauga, new outlet malls in Edmonton, Montreal (Mirabel), Toronto, Niagara, Vancouver, etc….
What is happening in retail is a swift in spending, more people are moving away from mid-priced retailers such as Abercombie, Gap, Holister to cheaper options, Fast Fashion retailers such as H&M, Forever 21, Zara, Top Shop, Iniqlo, Joe Fresh and with their saving, are complementing their wardrobe with higher end brand names from Nordstorm. Most department stores in the US and Canada are increasing their square footage, for example, Holt & Renfrew typical store size in the past was in the range of 30k to 40k square feet, they have increase all their stores to 120k to 150k based on the success of Neiman Marcus in the US and are opening at 220K sq. ft. store in Montreal.
In Canada, department stores like Sears are dying but are being replaced by Nordstorm, Saks fifth Avenue, Simons and outlet versions such Nordstrom Rack and Off the Fifth. In the US, department stores like Sears and JC Penny are slowly dying but Bloomindales, Neiman Marcus, Nordstrom are all expanding and Kohl’s is also doing fairly well (stock last year was at an all time high).
Here's some pretty interesting facts, 78% of people prefer to shop in a store and 94% of sales for retail on in store.
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