 | | How "Mallmageddon" Revealed a Troubled Market | | Rob Morgan, Bond Strategist, The Oxford Club | Telecom Insider: "Get Into 5G Stocks by February 24"
 One seismic event could trigger the biggest investment boom in recent history. But if you don't have your money in a short list of 5G stocks, you'll miss out completely.
You must take this one step to get the details before Monday, February 24. | | | Shopping malls have been part of the American way of life for many decades now. But unfortunately, many seem to be withering on the vine these days.
I live in Lancaster County, Pennsylvania, and we seemed immune to this "Mallmageddon," as it's been termed, until about 18 months ago when one of the four anchor stores in our regional mall closed, followed by another about six months ago. | | | We're lucky, though - replacements for those storefronts have already been announced. Meanwhile, 30 minutes away in York, Pennsylvania, half the stores are shuttered in the regional mall.
It has been announced that a mini-casino will enter the mall in their place. But is that what people really want from a mall?
Nationwide, despite a strong economy, retailers closed 9,000 stores last year. That outnumbered the stores closed in 2018, which also outnumbered the stores closed in 2017 - and 2017 was a record.
Already this year, retailers have announced plans to close 1,200 stores, which would put the retail landscape on track for another record number of closings.
Personally, I tend to chalk all these brick-and-mortar store closings up to the "Amazon effect." There is no doubt that we're becoming a nation of online shoppers. And the last time I walked through the York Galleria mall, I imagined that to be the case.
However, a closer look at the facts doesn't bear that out...
Internet shopping accounts for only 11% of total retail sales, so that by itself doesn't explain Mallmageddon. | | | Rub This Where It Hurts
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ACT FAST and claim three bottles today (while supplies last)! | | | Furthermore, 70% of retail spending in the U.S. is in categories that have seen slow encroachment from the internet, either because of the nature of the product or because of the regulations governing the sale of the product.
It's pretty clear there are other factors at work here. In fact, three key ones stand out:
- Consider the rise of big-box stores. In a recent study, University of Chicago economists Chad Syverson and Ali Hortaçsu analyzed recent retail trends and discovered that big-box stores are more of a factor in Mallmageddon than the internet. They found that over the 14 years ending in 2013, Amazon (Nasdaq: AMZN) added $38 billion in sales, while Costco (Nasdaq: COST) added $50 billion and Sam's Club added $32 billion.
- Income inequality is another factor cited in the decline of the American mall. The Pew Research Center estimates that since 1970, the share of the nation's income earned by families in the middle class has fallen from nearly two-thirds to roughly 40%.
Of course, the target audience for most American malls is the middle class. Retailers that target both the high end of the income spectrum and the low end have seen almost all the growth in retail sales in that period. - The third key factor that can be attributed for the decline in the American mall? We spend more now on services than we spend on things.
In 1920, Americans spent more than half their income on food (38%) and clothing (17%), and nearly all of that was purchased through traditional retailers.
Today, food accounts for about 10% of income spending, while clothing is down to just 2.4%. Next time you're in your local mall, take a careful look around. This underestimated barometer of the market's health may be giving you more valuable insight than you'd think.
Good investing,
Rob | | | | | | Devastating Announcement on March 18 Could Change America Forever
Expert predicts an announcement scheduled for March 18, 2020, could have many Americans unloading their investments and running to the bank. With just one move, the most popular asset in America could suddenly be on its way to being illegal.
Click here to see how you can protect your family and wealth. | | | | - More From Wealthy Retirement - | | | | | | | | | | "Not the Deal Americans Were Promised!" Congress Passes Law That Could Reduce Retirement Accounts. Details Here. | | | | | |
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