Retail Death Watch
I could probably write a book on this subject since it is such a powerful technology-based disruption taking place, but then what would I talk about in future blogs? As you know, the shift to online purchases continues and it is severely disrupting brick-and-mortar retailing. Watch: Retail is a Mess to Say the Least
Here are a couple of interesting charts:
As you can see from the above chart, while it is still early, it appears we have reached a tipping point where retailers are all scrambling to reduce their footprint. Just a quarter or two ago, many were happy with their footprint but now they are saying that they need to aggressively close stores. What this means is that they are all doing the same thing at the same time – looking closely at their weakest locations and eliminating them. This has a viral effect, since the smaller mall-based retailers and those that locate adjacent to malls all depend on a handful of big retailers to keep things afloat. Not only that, but the retailers will be looking at the exact same locations to eliminate, so entire shopping areas will suddenly just go dark. If the large retailers are closing stores, which they are, many others will follow. Read More: America's Stores Are Closing Stores Faster Than Ever
Virtually every retailer is trying to re-emerge as an e-commerce brand, and even with so many players rushing to the space, amazingly, Amazon still took over fifty cents of every new dollar to e-commerce in 2016:
Consumers are Confused about Artificial Intelligence
In this blog, I frequently refer to artificial intelligence and its important role in the technology revolution that is upon us. According to a recent study, however, most consumers do not understand A.I. and do not realize when they are interacting with A.I. (Click here to read more). When asked, only 34% of survey respondents thought they had directly experienced A.I., but when asked about the technologies they use, the survey found that at least 84% of them use at least one A.I.-powered service or device.
Brewery Bubble?: In 2016, for the third straight year, there were over 1,000 new brewery permits issued. Interestingly, the number of breweries nationwide has more than tripled since 2010, but per capita beer consumption is dropping. I have noticed this phenomenon in Cleveland and can not help but to wonder if it is a fad. Read More: Brewery Bubble?
