Gold Pile Posted November 17, 2017 Share Posted November 17, 2017 Retail REITs are being hammered by the "rise of Amazon". Absolutely online shopping is growing. But some stores are a destination. People go there to shop for the experience. Ticker: SKT is a fine example. They locate in nice areas, people make an afternoon of going there. Still the stock gets hammered. End rant. Link to post Share on other sites
RecentChange Posted November 17, 2017 Share Posted November 17, 2017 Its been years since I went to an outlet center. YEARS. But I understand the retail dynamics in the bay area maybe different than other regions of the country. 1 Link to post Share on other sites
carhill Posted November 17, 2017 Share Posted November 17, 2017 Retail in tourist destinations appears to be robust, so much so that when we were leaf peeping a month or so ago some popular places were already closed with 'Thanks for a great season' on their doors as hundreds of potential buyers filed past. The places we visited were overrun. They also, overwhelmingly, augment their physical presence with an online presence, shipping products around the country and world. However, and I noticed this since starting to buy local more in my retirement location, once the tourists leave, in our case the fishermen, boaters and beach people, the towns are ghost towns. The locals always say you'll do OK if you can make it through the winter. True 'dat. That's one area where having a blended physical/online presence can help survive the slow times and pay for the storefront. Before the internet that wasn't easily possible, save for the big retailers like Sears and Penny's, etc, that had 'catalog' departments. I view online stuff as being environmentally friendly. That may not be the case for others but it is when it's otherwise a 20 mile drive polluting fresh air to get to some buildings with stuff in them. The postal carrier drives by every day whether they have something for me or not. Their pollution is relatively static. I still see retail stores as a destination, though not as a random one. More planned and purposeful. As long as we still socialize humans to want to personally interact with other humans and touch the things they like to consume, I think retail is in no danger. It'll adjust. Link to post Share on other sites
amaysngrace Posted November 17, 2017 Share Posted November 17, 2017 I shop online and in stores too but would rather go to the store to see whatever I'm buying in person. It's just not always practical though. 1 Link to post Share on other sites
Author Gold Pile Posted November 18, 2017 Author Share Posted November 18, 2017 Its been years since I went to an outlet center. YEARS. But I understand the retail dynamics in the bay area maybe different than other regions of the country. Same with me. That is why I say online is growing. But the stocks of some have been beaten down disproportionately. Plenty of folks, including online shoppers, occasionally seek out a destination retailer. Link to post Share on other sites
Author Gold Pile Posted November 18, 2017 Author Share Posted November 18, 2017 Retail in tourist destinations appears to be robust, so much so that when we were leaf peeping a month or so ago some popular places were already closed with 'Thanks for a great season' on their doors as hundreds of potential buyers filed past. The places we visited were overrun. They also, overwhelmingly, augment their physical presence with an online presence, shipping products around the country and world. However, and I noticed this since starting to buy local more in my retirement location, once the tourists leave, in our case the fishermen, boaters and beach people, the towns are ghost towns. The locals always say you'll do OK if you can make it through the winter. True 'dat. That's one area where having a blended physical/online presence can help survive the slow times and pay for the storefront. Before the internet that wasn't easily possible, save for the big retailers like Sears and Penny's, etc, that had 'catalog' departments. I view online stuff as being environmentally friendly. That may not be the case for others but it is when it's otherwise a 20 mile drive polluting fresh air to get to some buildings with stuff in them. The postal carrier drives by every day whether they have something for me or not. Their pollution is relatively static. I still see retail stores as a destination, though not as a random one. More planned and purposeful. As long as we still socialize humans to want to personally interact with other humans and touch the things they like to consume, I think retail is in no danger. It'll adjust. I too have oft noticed and admired retailers near tourist areas. Gold Mines! Online is fine for my shorts and socks, but I want to shop in person for my blue metallic threaded suit with shark skin elbow patches. You have to see it person to make sure it's as elegant as the description. Link to post Share on other sites
mrs rubble Posted November 19, 2017 Share Posted November 19, 2017 I have only ever bought pizza online, and the very occasional item I can't find in a store. I do lots of internet searching/price comparisons so I know which shop to go to and who stocks what before I go shopping. 1 Link to post Share on other sites
thefooloftheyear Posted November 19, 2017 Share Posted November 19, 2017 (edited) Part of what makes my life pretty good right now is that over decades of time, I have fostered relationships with key people and businesses...I am never in a jam of any kind, whatsoever..Accountants, lawyers, banks, electricians, restaurants/caterers, gardeners, movers, computer guru's...you name it...If I need something done, people know who I am and there are no hurdles..Just pick up the phone......I return the same, as most of these people are all part of a "network".....We don't "shop" each other...We do business.... You can't have these relationships if all you are doing is searching for things as cheap as you can find them on your Smartphone..You become a nameless and faceless nobody to the world...You haven't shown anyone loyalty, so what do you expect?? If you buy something online, and it doesn't work or fit, what can you do now? Ask your computer for advice? Good luck trying to call the manufacturer and speak to "Sam" over in the Philippines who doesn't even know how to operate a toaster... It's just a matter of time before the Amazon's and Walmart's get into just about everything....This is not good in the grand scheme of things as I see it....We want choices, we want to be able to talk to the principals of a certain business on many occasions.....all this will be lost if we are not careful here.. Bottom line is it's ok to use online for certain items...Don't let price be your only criteria...But don't lose sight of the big picture and how your shopping affects your ability to build your network....It may not seem that important to you, for me it's vital.. TFY Edited November 19, 2017 by thefooloftheyear Link to post Share on other sites
carhill Posted November 19, 2017 Share Posted November 19, 2017 TFY, that's probably signs of our times. I noticed in my industry as the old-timers sold out and the younger generations changed from asset-based to debt-based and handshake contracts were replaced by lawyers, personal interaction lessened and vendors became just another number in a contact list. Enter 'it's business, not personal'. I'd say that started happening in my industry, heavy industrial, in the mid-90's in California, so a bit over 20 years ago. Of course, a lot of my industry is now gone from the state too, either to lower cost states or Mexico or China. Again, it's not personal, just business. People are just gears in the machine. 'Retail', at one time a really cool adventure for a young guy being able to walk into a machine shop and talk to a machinist or shop owner, show him a part and get it made in a day or two, is long gone. Now stuff is recycled rather than repaired and new stuff brought over in containers and delivered by freight companies. When I was reading this thread yesterday I pulled up a local video from last year where artists from all over the world gathered to compete in the world of saw sculpture, meaning they take big tree parts and make them into pieces of art, generally with chainsaws. It's a pretty robust industry where I bought my retirement place. The competition was going on right in the middle of town during summer season and I was gobsmacked at how few people there were there, mostly just the competitors and their families/friends. I mean there were competitors from Japan, Australia, Europe, South America, everywhere. Hardly any audience watching amazing art being made that will last for decades if not hundreds of years. Oh, lastly, with the significant increases in fuel taxes that California just implemented, and not seeing an end to that trend anytime soon, people who are at the balance point of retail versus not can be easily tipped into not by nothing more than the government lining its own coffers. The cost of all products should rise because business nearly always passes increases in costs along to the customer but those increases are incremental and small per item versus the much larger net increase of fueling one's vehicle to pick up that small retail item. So, do I pay ten bucks in fuel to buy groceries local in town or have Amazon deliver them at the price of the items alone? Purely from a cost standpoint and not accounting for the value of my time? Thank goodness most people who do buy retail don't make such calculations. 1 Link to post Share on other sites
Author Gold Pile Posted November 19, 2017 Author Share Posted November 19, 2017 You both bring up valid points in the big picture. I'm a little more with carhill as far as not seeing a clear answer. Apologies to either or both if I misstated things. On a less expansive level I feel that SKT REIT has a sound business and it's stock is being punished because other retailers are struggling. Not to mention that many investors are exaggerating the Amazon effect. It's real and game changing, but exaggerated. Mrs Rubble. myself, and others who shop both ways will continue to hit destinations stores now & then. Link to post Share on other sites
TheFinalWord Posted November 26, 2017 Share Posted November 26, 2017 (edited) Retail REITs are being hammered by the "rise of Amazon". Absolutely online shopping is growing. But some stores are a destination. People go there to shop for the experience. Ticker: SKT is a fine example. They locate in nice areas, people make an afternoon of going there. Still the stock gets hammered. End rant. Yes, it is true that online shopping is becoming ever more popular. To compensate, a lot of grocery stores are offering pick-up services, where you order online, drive to the store, and employees have your order ready for pick-up at the front. But they won't be able to compete forever using that model. Walmart Wants to Take on Amazon With Flying Warehouses Personally, I see the online experience becoming more interactive as time goes on. Drones will deliver packages, virtual reality will allow one to try on clothes, etc. I've been using this service stitchfix and I love it. As a guy, I'm not he best at styling. But with this service, you provide information on the type of style you like with a professional stylist (usually done as a survey as well as a phone consultation), as well as your measurements, and the stylists selects and sends you out 5 outfits. You keep what you like and send the rest back. You can keep alternating the outfits in and out to keep your wardrobe small, but at the same time a wide variety of clothes. A good overview of these types of services: Edited November 26, 2017 by TheFinalWord Link to post Share on other sites
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