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The US Consumer Is So Strong, Family Dollar Is Closing 370 Stores

Tyler Durden's picture




 

First, they came for the upper middle-priced retailers when Macy's shut down 5 stores and fired 2500... and nobody said anything.

Then, they came for the middle-priced retailers when JCPenney announced it would shut down 33 stores and fire 2000... and nobody said anything.

Then, they came for the lower-priced retailers when Radioshack celebrated the one year anniversary of shutting down 500 stores by shutting down 500 more...  and nobody said anything.

Today, as we plumb the depths of the US economic food-chain in that last bastion for the impoverished US consumer, dollar stores, we find that that staple for low-cost "everything" Family Dollar, which operates 8,100 stores around the country, will be shutting down 370 stores "as it tries to reverse sagging sales and earnings." It was not clear immediately how many thousands of workers would be affected by the store shuttering. We assume "many to quite many."

And what do they say? Why, that "the US economic recovery is obviously stronger than ever" of course!

From AP:

The retail chain follows competitors in highlighting the split between shoppers who are enjoying an improving economy and those being left behind.

 

Dollar General, the nation's largest dollar-store chain with 11,100 locations, offered a weak profit outlook last month after reporting weak fourth-quarter sales. And Dollar Tree, which operates about 5,000 locations, missed profit expectations for the holiday quarter in February.

 

Family Dollar has stumbled even more than its rivals because it has made mistakes in pricing, merchandising and the locations of its stores, analysts say. Still, the industry's problems are a big departure from a few years ago, when Family Dollar and other chains packed in customers and expanded rapidly by catering to cash-strapped people during the Great Recession.

 

But that expansion has spread shoppers thin. And retailing giant Wal-Mart is muscling in, too, by accelerating its growth in small stores, while increasing its offerings of small packages that are easy on the budget.

It wouldn't be a pathetic management team if it didn't scapegoat the weather instead of casting blame where it truly lies: an incompetent Federal Reserve that has done nothing for the recovery of the "non-1%" and sure enough:

Family Dollar Chairman and CEO Howard Levine told investors on a call that the poor weather led to numerous store closings, disruptions in merchandise deliveries and higher-than-expected utility and maintenance expenses.

Oh so, the reason revenue dropped 3.8% in the quarter was snow. So why did revenue drop 2.8% in the last quarter of 2013? Fear of imminent snow?

Levine did retain a tiny shred credibility when he added that "shoppers' financial constraints and a discount-driven holiday season also played a role." A rather massive one.

What other mistakes did management make?

Family Dollar had shifted away from its focus on $1 items and had offered too many temporary promotions, retail consultant Craig R. Johnson said. The company now says it wants to go back to focusing on everyday low prices and $1 items to restore confidence it offers a predictably good deal every time a shopper visits the store.

Yup: the US recovery is so strong, consumers can't even afford to spend $1 on groceries. And now buy stawks. The Fed demands it.

Finally, we are not being entirely fair. It is not every retailer that is getting crushed. Only those catering to the non 1% of course. "The retail chain follows competitors in highlighting the split between shoppers who are enjoying an improving economy and those being left behind." Indeed, as we first showed several months ago in "Shopping With Bernanke: Where QE Cash Ends Up Tells Us Who Benefited"...


"Recovery"

 

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Thu, 04/10/2014 - 17:21 | 4644967 buzzsaw99
buzzsaw99's picture

Take another bonus Levine.

Thu, 04/10/2014 - 18:09 | 4645195 Silver Bug
Silver Bug's picture

What a joke and a bunch of propaganda, the US economy is not recovering, this mantra they keep chanting is not working. People are waking up.

 

http://jimroger.blogspot.ca/

Thu, 04/10/2014 - 17:22 | 4644969 Rainman
Rainman's picture

What's next .. Family Ruble Store ?

Thu, 04/10/2014 - 17:46 | 4645065 Skateboarder
Skateboarder's picture

No, Family Yuan store. Taking out the middleman - straight from the factory to you, bitchezz.

Thu, 04/10/2014 - 18:03 | 4645161 Citxmech
Citxmech's picture

Sorry to jump-in off-topic - but anybody watching BTC get monkeyhammered right now?  JFC it was at $400 this morning - now at $360 and dropping. . . 

Thu, 04/10/2014 - 18:12 | 4645207 Pure Evil
Pure Evil's picture

Where's PhoneSexStar when you need him/her/it to rally this BiTCh back up?

Thu, 04/10/2014 - 17:22 | 4644970 Charles The Ham...
Charles The Hammer Martel's picture

I can think of at least 5 wal marts that have no reason to still be open in a 25 mile radius of where I am. The impossibility of these stores to ever turn a profit again in this environment is astounding but that company just does not have the balls. They will file bankruptcy within the decade, take that to the bank.

Thu, 04/10/2014 - 17:28 | 4644986 Cursive
Cursive's picture

@Charles the Hammer Martel

At least Wal-Mart usually gets 10-yr. property tax exemptions that subsidize operations.  WMT, FDO and DG are fighting a turf war for the mouth breathers.

Thu, 04/10/2014 - 17:35 | 4645008 Charles The Ham...
Charles The Hammer Martel's picture

when you mentioned mouth breathers, I instantly thought of that asian carp fish that kids love to feed with those little pellets you can get out of that machine with a quarter.

Thu, 04/10/2014 - 17:43 | 4645041 Harbanger
Harbanger's picture

Wait till the dollar is devalued and everything in Walmart (99% of which is imported) becomes a high end store.

Thu, 04/10/2014 - 18:00 | 4645147 Keyser
Keyser's picture

Bingo!!! Where will the rabble shop then? 

 

Thu, 04/10/2014 - 18:14 | 4645216 Pure Evil
Pure Evil's picture

Garage sales, flea markets, and second hand stores like Salvation Army, Goodwill, and Habitat for Humanity.

Thu, 04/10/2014 - 18:19 | 4645239 Shad_ow
Shad_ow's picture

They will be shopping at other people's homes.

Thu, 04/10/2014 - 18:27 | 4645279 cynicalskeptic
cynicalskeptic's picture

Lately, Walmart's largest sellling sector is FOOD.  Walmart is raking it in big time from EBT and other government programs.

What happens when THOSE are cut back? - and it is GOING to happen.

Food pantries are in bad shape already, what's left?  Dumpster diving?  But if the stores that used to throw stuff out are closed there aren't any dumpsters to go searching through......

 

 

Thu, 04/10/2014 - 18:36 | 4645318 Harbanger
Harbanger's picture

How were the hungry fed in the US before big Gov became the caretaker?  That's what it will have to be again.  It's not the end of the world, better relationships and some good may come of it.

Thu, 04/10/2014 - 18:55 | 4645386 813kml
813kml's picture

I think that's a bit optimistic, the better relationships will consist of rioting and looting with friends. 

Thu, 04/10/2014 - 22:33 | 4646076 daveO
daveO's picture

Only if it's a Cold Turkey withdrawal of handouts. The plan is to slowly withdraw handouts via inflation.

Thu, 04/10/2014 - 18:58 | 4645399 NOTaREALmerican
NOTaREALmerican's picture

Re:  How were the hungry fed in the US before big Gov became the caretaker?

When will you guys learn...  We're here now because we've already answered this question MANY times.  NO-FUCKING-ONE takes care of anybody.

Re:  That's what it will have to be again.

Yes, it WILL happen again, that goes without saying for Christ's sakes,  and then what?   Do you actually think people live peacefully while staving.  Again, we have gone through this many times.

Perhaps if the Libertarians could comprehend HUMAN cause-n-effect instead of thinking like idiot-savant marxist economists some FUNCTIONAL economic system could be created.

Thu, 04/10/2014 - 20:00 | 4645653 Bangin7GramRocks
Bangin7GramRocks's picture

There was a million more farms. The world is built around industrial operations with just-in-time inventory systems. There will be much chaos and violence before we return to the old system.

Thu, 04/10/2014 - 21:05 | 4645805 Seek_Truth
Seek_Truth's picture

And there was a much larger percentage of the population that believed in God, and because of this- absolute, rather than relative, morals.

Love your neighbor meant something very different during the Great Depression as compared to today.

 

Thu, 04/10/2014 - 22:37 | 4646088 daveO
daveO's picture

Mom grew up during the depression. She said hobo's, from the railroad, came by everyday offering to do chores for food. She said her mom fed them day old biscuits that she saved just for that purpose. Day old biscuits taste pretty good to starving folks.

Thu, 04/10/2014 - 19:09 | 4645451 hobopants
hobopants's picture

If they cut the foodstamp program they better have the helicopters and private jets standing by. Stock market collapse would be nothing compared to the chaos resulting from the end of bread and circus welfare programs.

Thu, 04/10/2014 - 18:15 | 4645220 LooseLee
LooseLee's picture

Ha, I immediately thought of BANKERS & POLITICIANS and their supporters...

Thu, 04/10/2014 - 17:23 | 4644973 ssp2s
ssp2s's picture

Wealth effect

Thu, 04/10/2014 - 17:34 | 4644998 cougar_w
cougar_w's picture

But of course.

i interpret this to suggest Americans are now refusing to pay less than a dollar, for anything, on general principles.

Micky D's better start to work on their new Continental cuisine menu. Obviously french fries and a burger simple are not going to cut it.

Thu, 04/10/2014 - 17:42 | 4645037 Cursive
Cursive's picture

@cougar_w

I refuse to go to McD's unless there is a thong-wearing topless chick throwing a tantrum.  Think of it as dinner theater for the New Normal in Obamaneyville.

Thu, 04/10/2014 - 17:59 | 4645141 cougar_w
cougar_w's picture

Man I wish I lived where you do. Hell I'd probably pay 5 bucks at the door.

Around here the entertainment resorts to people in Target-label combat fatigues and Oakland Raiders hats (worn sideways, nigga) walking down the sidewalk shouting and "training" their pitbull to attack a guy running away wearing a gorilla suit. I shit you not, I have the video here somewhere. Wife was so terrified, she called the cops. They just laughed.

As a result I'm making myself a battle axe to keep near the door. And I'm really good at iron work. Maybe we'll see what their dogs make of a 200 pound cougar going all Medieval on their asses.

Thu, 04/10/2014 - 18:03 | 4645163 JohnG
Thu, 04/10/2014 - 17:28 | 4644985 Smegley Wanxalot
Smegley Wanxalot's picture

All their customers are buying PEZ candies on Amazon now, one dispenser at a time.

 

Thu, 04/10/2014 - 17:36 | 4645013 Headbanger
Headbanger's picture

LMAO!   I can't believe anybody still remebers PEZ. And they're still going strong.

https://www.pez.com/

Too funny.

I wonder if they still make those horrible little wax bottles filled with some sweet syrup shit?

 

Thu, 04/10/2014 - 17:55 | 4645119 BandGap
BandGap's picture

Yep, they sell them at a local candy shop here, along with all that other 2 fopr a penny confection.

I yearn for the 70s.

Thu, 04/10/2014 - 19:06 | 4645402 813kml
813kml's picture

You know things are bad when people fondly reminisce on the competent leadership of Tricky Dick.

Thu, 04/10/2014 - 17:28 | 4644987 Late onset ADHD
Late onset ADHD's picture

True story... not 30 minutes ago, I had an "Edward Jones" rep going door to door in my area "introducing himself" and asking if there was anything he could do to be of service. I live on five acres and always need odd jobs done, so...

I asked him if he wanted to paint my house. He looked at me funny.

I said "never say never, pal... did you see the VIX today?"

the shit is gettin' out of control.

Thu, 04/10/2014 - 17:39 | 4645024 seek
seek's picture

Knock. Knock.

Opens door.

"Yes?"

"Excuse me sir, I'm your local Edward Jones rep, and I have a very important question."

"Go on..."

"Are you a muppet?"

Thu, 04/10/2014 - 17:45 | 4645050 Headbanger
Headbanger's picture

Speaking of knock knock...

http://www.youtube.com/watch?v=xzzlf9OH7x8

 

Thu, 04/10/2014 - 17:55 | 4645116 Big Corked Boots
Big Corked Boots's picture

Did the guy know what VIX was?

Fri, 04/11/2014 - 01:04 | 4646421 Late onset ADHD
Late onset ADHD's picture

I didn't want to dick with him too much...

I did ask real fast "do you read ZH?"

"What's that?" was the response.

Who's the muppet now motherfucker.

I actually felt bad for the guy.

Thu, 04/10/2014 - 18:08 | 4645187 aVileRat
aVileRat's picture

Yup

Can confirm it must be getting really bad on bond desks & deriv prop outfits. Have had calls this week from as far away as Singapore, plenty of VP & Director's willing to relocate for the mid-level jobs at a (they offer) 60% pay cut. And they have never touched the sector before.

Good times ahead, I'm going to bet based on average sell-side desk activity things are going to get very sticky everywhere soon. Unless you are a organic growth corp, with less than 1x debt, good luck out there. Sadly, since 99% of the US Economy is either biotech, tech, app or consultants who are only in the game to raise equity and then "flip" the asset to a bigger sucker, a lack of synthetic leverage via seasoned equity rounds or fiscal leverage via yield reaching insitutions are going to endgame this bull soon.

 

Thu, 04/10/2014 - 22:40 | 4646102 daveO
daveO's picture

EJ loves targeting retirees with door to door solicitation and free lunch offers.

Fri, 04/11/2014 - 01:14 | 4646433 Late onset ADHD
Late onset ADHD's picture

Really? I have never been solicited by a "financial type" door to door... ever. Plus it's three hundred yards between front doors out here. It really surprised me... in a harbinger kind of way.

EJ needs to rethink their methods... that is just creepy and reeks of desperate.

Thu, 04/10/2014 - 17:28 | 4644988 starman
starman's picture

if we'd just all listened to Jo the plumber!

Thu, 04/10/2014 - 17:30 | 4644992 RacerX
RacerX's picture

They're "Streamlining operations"

Thu, 04/10/2014 - 17:31 | 4644995 kurt
kurt's picture

Hey Fuckers! The recession will end when gasoline is $2.65 per gallon. The difference is wealth extraction from the dying middle class. The reason is old-fashioned monopoly price manipulation. Of course the other half is a crime syndicate called the "Fed".

Where are the real men? Where have you gone? When will you act?

Stop watching TV before it's too late. False flag coming. Attention goverment employees: you swore an oath to protect the Constitution. Attention military, your leaders are traitors.

A conspiracy is a group of people agreeing on something. Can't you conceive of a conspiracy to take down the USA? What do you think is happening?  

Thu, 04/10/2014 - 19:50 | 4645616 El Crusty
El Crusty's picture

more like $1.50 a gallon- anything more is a ripoff and everyone knows it.

Thu, 04/10/2014 - 17:32 | 4644999 Cattender
Cattender's picture

Damn! i just bought a Bottle of dish soap from Family Dollar back in January...

Thu, 04/10/2014 - 17:50 | 4645082 Dave Thomas
Dave Thomas's picture

Me too, ever notice how the sizes of the various cleaning products are not the standard sizes?

Palmolive at Randalls = 25 oz

Ajax at Dollar tree = 11oz

 

Still the Ajax is the better buy at one whole dollar, the Palmolive at Randalls is like 4.97 rofl.


http://www.youtube.com/watch?v=p14tIBa1f70

Thu, 04/10/2014 - 23:10 | 4646192 NickVegas
NickVegas's picture

Was thinking about shopping at Randalls. Wanted to get a "club card" dealy thing. No anonymous signup, no shoppy. Fuck Randalls, and fuck the data harvesters.

Thu, 04/10/2014 - 17:32 | 4645000 joego1
joego1's picture

Take a bow Berry.

Thu, 04/10/2014 - 17:39 | 4645005 SmilinJoeFizzion
SmilinJoeFizzion's picture

you only have to buy that cheap Chinese toxic knockoff WindeX twice a year. 

Thu, 04/10/2014 - 17:37 | 4645017 OldBoy
OldBoy's picture

Fucken Fed

Thu, 04/10/2014 - 17:38 | 4645023 Czar of Defenes...
Czar of Defenestration's picture

Not so fast.

The Dollar "chain" (Family Dollar, Dollar Store, etc etc) is crap, and people are slowly waking up to the fact they're by and large a RIP OFF store.

Most of what they carry can be had for less elsewhere.

 

This article lost credibility for me by placing "the economy" to blame for JCPenney's woes as well (JCP + Apple imbecile = RIP).

Thu, 04/10/2014 - 22:48 | 4646123 daveO
daveO's picture

Exactly. They are the 'Sub Prime' retailer. I learned this about 15 yrs ago. I bought a bar of Dove soap in a box, just like is sold all the other retailers. I get home, open the box, and the bar was at least 1/3rd smaller than what was sold elsewhere! I haven't been back since.

On the upside, FDO here, is now building their own stores(Pre Fab Steel). I don't know why they waited so long. The rent was killing them, I'm sure. 

Thu, 04/10/2014 - 17:39 | 4645027 Baby Eating Dingo22
Baby Eating Dingo22's picture

How many thousands of workers will lose their jobs?

None

They are not workers. They are stragglers just hoping to make next months rent.

Obama will take good care of them.

 

Thu, 04/10/2014 - 17:46 | 4645066 drendebe10
drendebe10's picture

Yessir!  Step right up! Get your EBT, obamafone and loads of other goodies right here!!!   Standing ovation for a job well done by the arrogant, narcissistic, lying, illegal alien kenyan muslim sociopathic ignoramus fudge packer in chief....  and all you tax paying serfs and peasants send in your money now.. you just have 5 more days!!!

Thu, 04/10/2014 - 17:40 | 4645029 Chuck Knoblauch
Chuck Knoblauch's picture

The slver lining of this story is that consumers are not using their credit cards to buy shit they don't want. The advertisers are losing the battle. Discount everything 80%?

Thu, 04/10/2014 - 17:46 | 4645052 hotrod
hotrod's picture

True story... not 30 minutes ago, I had an "Edward Jones" rep going door to door in my area "introducing himself" and asking if there was anything he could do to be of service. I live on five acres and always need odd jobs done, so...

There are 6 Edward Jones retail locations within 3 miles of my house.  I spoke with one at a bar and yes their mission is to go out and find cash.  He told me about how much money was in the county and that he needed to get his share of it.  Asked a friend I was sitting with that is CFO of a company if he could be broker of record on their retirement program. Yes, they gotta find money.  Must be harder now with so many people broke.  Door to door to ask for your cash which will probably be lost.  What do you pitch?  Those high yield money markets, bonds, annuities or high PE stock market
Thu, 04/10/2014 - 18:46 | 4645357 813kml
813kml's picture

I have a good friend who is an Edward Jones rep and he's always on the hunt for new business.  They keep upping his target numbers so his unofficial area is anywhere within a day's drive.  Their reps have high turnover.

He's actually honest and personable so he has done pretty well for himself, but he finally saw the light and is starting to save his money.  There's only so much local investment money in this area looking for new management, at some point he will have to convince new business at gunpoint.

Thu, 04/10/2014 - 19:45 | 4645602 GooseShtepping Moron
GooseShtepping Moron's picture

When an Edward Jones rep came to my door, I told him I had nothing to invest. When he came again two weeks later, I yelled at him and told him he was a lying con artist abusing the good will of others, and that I better not see him here again. He has not been back since, but I don't think he ever took my animadversions to heart. He just figured out that he wasn't going to get any money from me and decided to move on. I have seen the exact same look in the eyes of a petty fence who once tried to sell me a dingy-looking baseball cap at bus station.

Thu, 04/10/2014 - 17:46 | 4645060 10mm
10mm's picture

The Dollar Tree. Now that's a real dolla store. Rest are frauds above a buck.

Thu, 04/10/2014 - 17:46 | 4645064 mrmister
mrmister's picture

The economy is growing at such a pace that Family Dollar simply can't keep up with demand. So it must shut 370 stores. - BAGHDAD BOB

Thu, 04/10/2014 - 17:48 | 4645076 XRAYD
XRAYD's picture

With all the wealth creation, the former FDO shoppers have moved on to Nordstrom and Whole Foods. Stay long!

Thu, 04/10/2014 - 17:50 | 4645077 Big Corked Boots
Big Corked Boots's picture

Family Dollar?

Cheap shit made by near-slaves from China, sold from blowaway tin buildings in the poorer districts of flyover country, staffed with the crotchfruit that survived or didn't land in prison, paid for with printed EBT money to enrich some soulless scumbag at the top of the pyramid.

And yet.... this is America.

Thu, 04/10/2014 - 17:59 | 4645140 SmilinJoeFizzion
SmilinJoeFizzion's picture

+1 Crotchfruit

Thu, 04/10/2014 - 17:53 | 4645096 Duc888
Duc888's picture

Well, a lot of people must be on the ballz of their ass.  I'm cashing in on some REALLY sweet deals with synths (keyboards)  I just got a Kurzweil that is current and sells for $1600.....for $840.00  I got an immaculate KORG M3 with all the extra EXB stuff for $800.00

 

Apparently there's lotsa people living wayyyyyyyyyyyyyy beyond their means and are selling some really nice stuff for .40-.50 cents on the dollar.

 

I got my eyes out for a nice 5th wheel now...

Thu, 04/10/2014 - 18:35 | 4645312 cynicalskeptic
cynicalskeptic's picture

Echoes of the Great Depression...... people selling a year old car for whatever they could get... 

http://static.guim.co.uk/Guardian/business/gallery/2008/oct/28/1/GD90838...

Thu, 04/10/2014 - 17:53 | 4645101 STG5IVE
STG5IVE's picture

You know times is bad when the dollar stores can't even compete.  Yesterday I saw a pimp on a mobility scooter.

Thu, 04/10/2014 - 19:02 | 4645412 813kml
813kml's picture

Sounds like the ho stroll has turned into the ho roll.

Thu, 04/10/2014 - 18:26 | 4645104 JR
JR's picture

The tremendous increase in EBT payouts, for one thing, moves many consumers to better quality at Target and Walmart. IE: movin' on up on government stimulus!

Thu, 04/10/2014 - 18:18 | 4645131 syntaxterror
syntaxterror's picture

'Broken Family Nickel' and 'Baby Momma Foodstamp' stores will fill the void

Thu, 04/10/2014 - 17:58 | 4645132 itstippy
itstippy's picture

People are getting desperate.  Two days ago we delivered a dumpster to a vacant rural house that's getting a new roof and some other renovations.  This morning I get a call from the roofing crew boss - "Where's our dumpster"?

Some ridge runner stole my 500# dumpster!  They must have used a flatbed trailer and a winch.  I suppose they'll cut it up and sell it for scrap steel.  What else would you do with a dumpster?

Thirty years in this business and I've never lost a dumpster before.  I had one get raided that was full of old aluminum siding.  I had kids roll a small wheeled one down a hill and into someone's parked truck.  But I never imagined someone would steal an entire damn dumpster.

The Sheriff's Deputy who took the report wasn't very surprised.  

Thu, 04/10/2014 - 18:01 | 4645153 cougar_w
cougar_w's picture

Half the streetlights near where I live don't work because someone is pulling out the copper wire for it's value as salvage

Pulling it out hot.

 

Thu, 04/10/2014 - 18:10 | 4645171 Big Corked Boots
Big Corked Boots's picture

All the garbage haulers in my area take a welder and leave a bead in the form of their initials on the flat exterior sides of the dumpsters. That way they have a permanent ID on them. I learned this from a guy in the "carting" business... he explained to me that his competitors never order dumpsters, they just look for the recently dropped off empties and pick them up and repaint them. He started the welding bit when they started sandblasting the original paint markings off his.

Thu, 04/10/2014 - 18:33 | 4645305 itstippy
itstippy's picture

Everyone around here knows my dumpsters.  My maintenance guy Herb is a talented freehand artist.  He sprays them green and puts our company name on them.  Then he adds this ridiculous-looking cartoon "Tippy The Trashman" character.  A chubby fellow in blue overalls and a kind of intoxicated smile on his round face.  Sometimes I'm wearing sunglasses, sometimes a straw hat, sometimes a necktie, etc.  It started as a joke but it's good for business and I can take a ribbing.  He's got that bufoon on all four trucks, too.

Thu, 04/10/2014 - 18:26 | 4645274 Offthebeach
Offthebeach's picture

Were are you, the Yukon?
I'm in Mass. You know, Cabots and Lodge and dead Kenny's and Mikey Dukakis and Mister Milk With Toast Romney, and we got people every single fukn day get shot, stabbed and iron piped for $40. For cigarettes( Brand name, of course. )

And you're surprised your now repainted dumpster got stolen? Please, ni**ER!

Thu, 04/10/2014 - 18:27 | 4645285 robertocarlos
robertocarlos's picture

True story. It's 3pm and I'm walking home past a young woman pleading with a cab driver to take her somewhere. She then offered him a blow job.

Thu, 04/10/2014 - 18:31 | 4645295 JuliaS
JuliaS's picture

In Russia dumpsters are all the rage. People in rural areas use them as water containers for irrigation and other needs. They've been a "hot" commodity for 20+ years.

Thu, 04/10/2014 - 18:40 | 4645328 cynicalskeptic
cynicalskeptic's picture

NYT had an article on car theft.  New cars are almost impossible to steal and theft rates HAD been declining.  

Now car theft rates are UP - for OLD cars being sold for scrap.

A car more than 8 years old can be scrapped without a title so you have people stealing old cars for scrap - the bigger and heavier the better.  Apparently old Ford Econoline vans are a popular target (they weigh 5000lbs.)  People who thought their old crappy cars were safe from theft have been rudely surprised - old and big are prime targets.

Thu, 04/10/2014 - 22:59 | 4646169 daveO
daveO's picture

Yea, I've read the same about my state, NC. Mine are old and big. Uh Oh.

Thu, 04/10/2014 - 18:23 | 4645260 TheRideNeverEnds
TheRideNeverEnds's picture

I don't get it, did they stop accepting EBT or something?

Thu, 04/10/2014 - 18:24 | 4645265 robertocarlos
robertocarlos's picture

It's almost impossible to compete with the new Blow Job store.

Thu, 04/10/2014 - 18:44 | 4645345 JuliaS
JuliaS's picture

Sure, when you start building dollar stores like Starbuckses, eventually you'll end up with an oversupply. Look at the raw quantity of stores all competing with eachother.

First mom-n-pop operations lost to the big name competition, now the giants are starting to trim fat, having eliminated competition.

And for those mathematically challenged, 4.5% of stores are getting closed - that's what the article is stating, sighting competition form other brands. There are high-turnover, low margin businesses, not Ferrari dealerships.

Not to argue with the main point. The income gap is indeed growing and the majority is getting poorer, but that's not why dollar places are closing. There's simply too many of them, due to too many companies rushing in to sqeeze the lemon. Dollar stores used to be a novelty type phenomenon. They were never huge, until a couple of years ago. Now they're as common as shopping malls.

Thu, 04/10/2014 - 18:47 | 4645362 Fix It Again Timmy
Fix It Again Timmy's picture

Have to close the stores because they just can't keep the shelves stocked since the merchandise flys off in seconds...It's cheaper to just drive a semi into the parking lot, set up a cash register and let the shoppers clean it out in minutes...

America's MANTRA - No jobs, no money, no SALES...... get used to it... 

Fri, 04/11/2014 - 09:30 | 4647059 fallout11
fallout11's picture

None of the local dollar stores can keep Tide detergent on the shelf. Stuff is like gold.

Thu, 04/10/2014 - 18:48 | 4645363 Meatier Shower
Meatier Shower's picture

Bullish!

As the economy improves, people are now able to afford more expensive products at higher end retailers.

/sarc

Thu, 04/10/2014 - 19:05 | 4645426 813kml
813kml's picture

And that higher end retailer will be your house after you leave for work.

Thu, 04/10/2014 - 18:50 | 4645369 Old Poor Richard
Old Poor Richard's picture

Peeps are shopping at the upscale stores like Walmart and Target instead of at the Dollar Stores which are becoming the Dollar-and-Nine-Cents Stores, despite the complete lack of inflation.  Clearing the economy is booming.

Thu, 04/10/2014 - 19:44 | 4645598 Incubus
Incubus's picture

the typical dollar store demographic is probably falling apart.not that they had much purchasing power to begin with.

 

I still order things online.  I don't have a reason to go dollar stores to buy things.  I see this as bullish.

 

 

Thu, 04/10/2014 - 19:40 | 4645582 justsayin2u
justsayin2u's picture

No no no.  You got it all wrong.  Famly dollar watched cnbs and bet on the economy heating up real fast - why else would Becky and Jimmy and the gang be so upbeat all the time.  Famly dollar went upscale too far too fast.

Thu, 04/10/2014 - 21:18 | 4645834 toadold
toadold's picture

Anybody or any business that files quarterly taxes just got hammered by Obamacare.  I figure a lot of stores wll get shut down so inventory can be dumped off the tax bite and they won't have supply either medical insurance or pay the "tax" on as many employees.  

Thu, 04/10/2014 - 21:34 | 4645890 silentsock
silentsock's picture

Im'ma opn uppa Fiddy Sent Stower!!

Fri, 04/11/2014 - 03:16 | 4646531 Not Goldman Sachs
Not Goldman Sachs's picture

Any data on Pawn shops?

"Marlin owner's" website is plum full of stories about getting bargins.

Bullish Pawn (and Edward Jones handyman home services)

Fri, 04/11/2014 - 03:32 | 4646544 -NaN-
-NaN-'s picture

Everyone knows they are closing due to the lousy weather.  When the weather improves, people will shop again, and they will re-open the stores. It is just plain math. /s

Fri, 04/11/2014 - 09:52 | 4647158 whatthecurtains
whatthecurtains's picture

In all fairness Radio Shack deserves what it is getting.  They went from selling electronic components to selling electronic gadgets.

Seriously who goes to a Radio Shack to buy a cell phone or a TV?   I'd never even consider the idea.   

Fri, 04/11/2014 - 12:06 | 4647782 A Cruel Accountant
A Cruel Accountant's picture

The new factoy is the home where food is made from scratch, you sew your own clothes, you clean your own house, you entertain each other instead of watch tv, you ride  and fix your own bike rather than use a car, you do your own home, and appliance repair, mow your own lawn, shovel snow with a shovel, Etc ect.

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