When we reported on the Toys R Us bankruptcy, we argued that it wasn’t just about shifting shopping patterns away from brick and mortar to online companies. A recent article on TechCo complaining that millennials are broke backs up our assertion.
As we pointed out, online retail sales have increased significantly, but they don’t account for the total decline in sales in brick-and-mortar stores. Peter Schiff has argued the problems in the retail sector reveal disturbing economic truths about middle America.
Another reason people are shopping on the internet, other than just the convenience of not leaving your house when you’re doing your shopping, is the fact that the average American shopper is broke. They can barely afford to buy the stuff that they’re buying. In fact, most people are buying stuff that they can’t afford. They’re just buying anyway and they’re using a credit card… Retailing is a shrinking market because Americans’ pocketbooks are shrinking, their paychecks are shrinking.’
Data on consumer debt backs up Peter’s contention that Americans are putting a lot of their purchases on plastic. He went on to say we need to look at the bigger picture when analyzing retail woes.
This post was published at Schiffgold on SEPTEMBER 28, 2017.