The Economy

Isn't much of it inside the old Michigan Central terminal?

 

Is this any better or worse than the Foxconn deal in Wisconsin?

 

Not all of it - Ford is also building a new town in West Tennessee.

 

GM is also investing $154 million on a plant in Lockport (near Buffalo) that makes parts for electric vehicles. They are supposed to add more than 200 jobs.

 

No, that's the tell for an understaffed store. That's the case in my Walmart experience, anyway.

Inventory-wise, area re-sets and large, feature-managed amounts of items are indeed typically planned and ordered higher up in the chain of command. But stores also usually have some individual autonomy in ordering specific items as needed, and the clearancing of products is often determined by the amount of "markdown money" designated for different departments at different times at each store.

As far as zoning, we have a constant chicken-and-egg argument going on in stores regarding whether we should zone first, or stock first. Higher management will usually say zoning is a higher priority, because customers supposedly don't like a messy store, and also because, the higher up in management you go, the more things become all about appearances, more than anything else.

Regular associates, though, will usually argue that we should put the higher priority on stocking, and do that first and foremost, you know, so that there is actually stuff on the shelves to sell, and to zone, at all. They also will argue that most customers really couldn't care less where something is, just that it's out so that they can buy it.

I can see the points of both sides. To be honest, though, I still lean toward stocking first, and zoning second in terms of importance. Perhaps I just haven't reached a high enough level in management yet. But I consider it more a result of seeing, everyday, just how much merchandise we receive, and how overwhelming the management of the back room and the inventory load is, than anything.

And just because of the nature of the beast, that may be a Walmart-specific issue, I don't know.

 

Kmart stores were always disasters, which made me inclined to not go. As long as it’s not that bad, I think you’re fine.

 

It’s weird, but “zoning” matters to me in some stores and not at all in others. I expect Wal-Mart to be disorganized. I expect Kroger or Target to be less disheveled. Aldi solved the issue because the way their product is opened inside the box gives the appearance of organization even when it’s actually not.

And Kmart’s biggest problem wasn’t zoning. They looked dirty. The tile, the racks, the walls, the ceiling. It was a 1987 time capsule into the 2000’s, but not in a charming way. They just looked gross, in the same way that Family Dollar stores look gross while Dollar Tree and Dollar General don’t. Color schemes and design matter so much in those stores.

I’m convinced Kohl’s beat JC Penney largely because their stores looked sleeker.

 

I attribute the demise of the traditional department store to expanded economic opportunities for women. In the not so good days women were either teachers, nurses, clerical workers or if they liked to sell worked in retail. So you could find really good sales clerks who were working in the store for minimal wages.

But women moved into other fields, A good sales woman can now sell real estate, insurance or something else and make a lot more than working in a Penny's or even a Macy's. But department stores still have a more labor intensive model than a store like Kohl's or Nordstrom Rack but hence higher prices. But now the sales clerk is someone who has been there three weeks and is not helpful. So people pick a cheaper option.

 

Really interesting thoughts.

I’m even annoyed now at finding someone who knows what they’re doing with suits out here in the sticks. The men’s shops are all gone or shells of their former selves. The department stores are filled with the sorts you described. I have to wait until I’m in Chicago and go to the guy my wife used while being a campaign manager to feel like I’ve gotten someone who knows what they’re doing. Makes me glad I don’t have to wear suits much anymore.

 

I also think the consumer mindset has changed a great deal. Whereas they wanted one-stop shopping - either at a big department store or a mall - now they prefer smaller specialty retail stores.

 

Either that, or immediate delivery such as Amazon. Add in the fact that we as a country massively overbuilt malls, and that’s why so many malls are losing tenants, closing altogether, or being repurposed.

 

I think it's both Amazon and specialty retail taking feet out of malls and big boxes. Amazons put the hurt on them, which opened the door for small shops to gain a foothold.

Of course, the rise of online shopping has also added to the horrible trend of consumers showrooming stuff at specialty shops. I had a guy two weeks ago come in looking at a $500 Mystery Ranch backpack. When he told me he was going to order it online and just wanted to see it in person, I pretty much brushed him off with the "OK, if you need me I'll be over in fly fishing."