The retail apocalypse is in full force in 2023 — and Amazon is only making it more deadly for many retailers. In recent years, the shopping behavior of consumers has dramatically changed. Nowadays, more and more people are entirely relying on the internet for any purchasing. And brick-and-mortar stores have been closing by the thousands as competition in the sector is getting tougher.
According to a Morgan Stanley analysis, Amazon accounts for almost a third of all retail sales and is responsible for half of the growth in the sector.
From household products to electronics, clothing, and groceries, everything is available on the platform, and that’s a huge advantage for the company. However, that is absolutely killing other brands that have been with us for decades, and many of them are at risk of going under this year amid a new wave of retail bankruptcies.
The megaretailer has been blamed for the downfall of major chains, forever changing the way we shop, and crushing millions of small businesses. But the truth is that the path to total Amazon domination is just beginning. One investment firm has even created a “Death by Amazon” index that tracks the stock prices of retail chains they believe are most threatened by the online retailer.
In 2017, the company at the top of the index was Toys R Us. Back then, the retailer was offering discounts to customers in an attempt to attract them back after Amazon made it all too easy to buy the hottest toys at the click of a button. But still, sales continued to decline by double digits, and in September of that year, the company filed for bankruptcy due to the $5 billion debt it had accrued.
Every year since then, the index has accurately forecasted which companies will be knocked down by Amazon, even predicting the demise of JPMorgan in 2020, and more recently, the collapse of Bed, Bath & Beyond. This year, many retail giants are reporting dropping sales, slower foot traffic, declining revenues, and announcing store closings. Hundreds of brick-and-mortar retailers are currently on Moody’s bankruptcy watchlist.
Blue Apron is one of them. Data shows that since Amazon’s acquisition of Whole Foods, Blue Apron has been hanging by a thread. Since 2021, the company is on a bankruptcy watchlist, and the non-essential service is likely to get hit hard as the downturn unfolds.
Macy’s is also seen as another potential victim of the ‘Amazon effect’ in 2023. The department store has been declining for a while, and Amazon’s growth has hastened its downfall. Hundreds of Macy’s stores have disappeared since the pandemic, sales are down, and the outlook remains discouraging for the retailer.
Retail experts suggest that the biggest bankruptcy of the year was also fueled by Amazon. For years, Bed Bath & Beyond was struggling with falling profits, and the home furnishing sector has been feeling the squeeze since the e-commerce company started offering free shipping to many shoppers. In April, the brand filed for bankruptcy and closed 360 stores nationwide.
All of this shows that the impact of the Amazon Effect has been undeniable. Amazon is putting its flag in the ground in one industry after another, cementing its role as the global leader in virtually everything.
Many companies are now gone, due in part to pressure from the online retailer that’s upended the American retail landscape. And if others figure out a solution fast, they might be the next stores destroyed by Amazon.
Article and video cross-posted from Epic Economist.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
What are the chances that Amazon will greatly increase prices after it achieves a virtual monopoly?
Monopolies historically never raise the prices. That is a false theory that never pans out, unless government is involved.
Quit blaming Amazon for everything. Bed, Bath & Beyond self-destructed due to wokeness. Dropping Mike Lindell’s products unleashed a massive conservative boycott that finished the company off. Don’t be surprised if Target, Anheuser-Busch and Disney die of the same terminal lunacy. As for other retailers, rampant theft in big blue cities is causing 100X more store closures than Amazon.
Agreed. We can also blame leftist law enforcement policies which have forced many stores to lock up products, making it inconvenient to shop there. Also, corporations who who pay their customer service people low wages, resulting in unknowledgeable and unmotivated workers. Might as well do your own research and buy on the Internet.
True, a lot of the stores are gone because of the shortsightedness of shoppers ignoring local & small businesses to save a couple dollars. But some of them are gone due to state & local politicians ignorantly closing “non-essential” businesses during the covid fraud, exempting the big corporate stores.
Many of those currently closing are doing so because they’ve embraced woke policies & lost most of their business..
Problem is, Amazon is no different. In addition to woke bs, they also endorse blasphemy, satanism, perversion, and child mutilation. We will soon find that all commerce is centered in PC/DEI behemoths, and consumer choice will be gone.
I don’t feel sorry for big box stores or shopping malls. Look at how many small business went under when these leviathons started selling their crap. Now they are getting a little bao ying (bad karma) from Amazon. And personally, Amazon is a lifeline for me. I’m retired and I don’t drive because I have poor eyesight and I can’t afford a car. So when I need something I just order it and it’s at my door in a day or too. And I’ve never had problems with returns either. Usually they will tell me to keep whatever it is I’m dissatisfied with and they will refund me or send the right item. I’m no fan of bezos but I really like Amazon.
right on! You beat me to it. They cut their own throat.
big box stores killed mom and pop, and now amazon will kill big box stores. one thing is for sure, people still like to shop, and this is where mom and pop can rise again. People WILL pay more for the convenience of buying something right then and there and taking it home. Mom and pop can really be successful if the merch is made in USA, by some local or national company that makes QUALITY products and not cheap Chinese CRAP like everything sold on Amazon. So, this isnt necessarily a bad thing.
At first this bothered me. But as the box stores have tried to keep up with Amazon. They have moved away from the one thing Amazon can’t offer. Better service.
The box stores have cut their staff back to the point that shopping there is an exercise in frustration. I had to wait 20 mins the other day just to get someone to take my money. They routinely are out of stock of whatever items I seem to need.
After what they did to Parler, I very rarely (almost never) shop at Amazon.
There are advantages to shopping at physical stores, but instead of capitalizing on those advantages, the physical stores try to compete with Amazon on Amazon’s terms.
They try to equal Amazon’s convenience and pricing to the detriment of the one advantage they have: the ability to ask for help from an actual human being, to see and feel the merchandise before purchasing, try things out, make sure they work. In the case of clothes, make sure they fit.
The brick and mortar stores, instead of emphasizing their ability to provide customer service, they’ve cut that service and reduced employee interaction with customers in order to lower prices. You go into a chain retail store these days and you’ll be lucky if you can get an employee to acknowledge your existence, let alone assist you with something. The shelves are typically a mess making it difficult to find what you’re looking for, pricing is unclear or not marked at all and checking out has become a nightmare.
Of course you also have to talk about the quality of the merchandise. One of the reasons Amazon was able to prosper so much is because the big box retailers all started selling substandard merchandise made by virtual slave labor in poor Asian countries. The quality declined steadily until it got to the state we suffer today…everything is just disposable crap. So, when Amazon came online and started selling the same cheap crap even cheaper and more conveniently, what was the incentive to go to a big box store to pay more for the same garbage? When Walmart had a commitment to selling US made goods, they were in their heyday. When Sam died and his successors compromised that policy, Walmart’s decline began in earnest. 20 years ago Walmart was my go-to store. I could get everything from toothpaste to motor oil in one convenient location. Now I’ve probably been in a Walmart once…maybe twice…in the past year. They sell junk, service sucks, the stores are dirty and disorganized, checkout is painful…Walmart is basically the epitome of everything that’s wrong with big box retailers today.
Because of the rampant thievery going on, many popular products are now locked up, but because you can’t find anyone to help you, you can’t get to them. Many times the items you’re looking for are out of stock (stolen?). even when the store’s website says that they have them in stock. Perhaps they have them in the back and just haven’t made it onto the shelves yet, but good luck finding someone to check on that for you.
Most stores have replaced several checkout lanes with “self checkout” areas and then only have maybe one or two regular registers open so if you need assistance with something, you have to wait in a ridiculously long line to check out. Most of the people in the self-checkout lanes can’t figure out how to use the machine so you end up waiting for them to pick up each item, find the barcode, wave the barcode in front of the scanner. Wave the barcode in front of the scanner again. Then the machine beeps and rings up the item twice, so they have to void one of them, which means they then have to wait for an employee (the one who is trying to watch over 10 or 12 self checkout machines) to come enter a code to void the mistaken purchase, then they have to bag all their purchased items in a bagging area that’s too small to work effectively, then dig around in their purse or wallet for their card, then try to figure out how to use the payment machine etc. etc. etc. It takes a person three times as long to check out using a self-checkout machine than it would take for a half-way competent cashier to check them out.
That would be fine if the self-checkouts were just used for people with just a few items, but because there are typically only one or two regular checkout lanes open, the self-checkout is often full of people with carts full of merchandise.
Then, in some cities anyway, you have to navigate the layers of panhandlers and bums hanging out at the entrances of the stores harassing people for their drug and alcohol money. You can complain in the store about it if you can find someone to complain to, but typically it’s against corporate policy for employees to confront the bums and calling the police does nothing because they’ve been defunded and demoralized and don’t have the manpower or ability to even effectively investigate violent crimes, let alone minor things like trespassing and panhandling…if those are even still crimes in that particular city.
So, what’s the draw for a brick and mortar store? Compared to that, I’d much rather sit in my den with my laptop, order the cheap, crappy products I want, and have them delivered to my door a couple of days later.
If brick and mortar stores want to survive, they’ll need to establish a reason for their existence. With the exception of a few of the smaller brands and family owned businesses (which I patronize regularly), they have failed miserably and are paying the price.
Personally, I’m eager for these big box retailers to fail. When they go out of business, hopefully entrepreneurs will recognize the opportunity and fill that space with businesses who recognize that there are plenty of people out there who are willing to pay higher prices when they get good service and a pleasant shopping experience in return. I’d personally much prefer to buy products live and in-person than online, but currently, with the exception of a few family owned specialty stores and smaller retailers, online is the only viable option.
The Amazon model is epic. But there are several startups gunning for Amazon such as myworld, public square and the
innovative tranzact card which offers a 1:1 cash back program program called zbucks which can then be spent in their zclub. Amazon doesn’t pay its vendors for 90 days, while tranzact pays it’s vendors up front to drop ship direct to the consumer. Amazon is predatory by nature stealing products from vendors then offering the same product at a cheaper
version under their amazon essentials label. These business practices will sink them. Public Square is an alliance of mom and pop small businesses that are willing to drop ship. Tranzactcard offers a banking component utilizing small minority banks. These startups will bury Amazon using their own model and fair business practices where everyone wins at a lower price then amazon. I just bought a refrigerator from Lowes. They not only bring it to you, they install it and haul the old one away. Try getting THAT from Amazon!
95% of big box stores became pandemic police. Hope they all go out of business.