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RE: An article from a millenial about the future of many B&M

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In Reply to: RE: An article from a millenial about the future of many B&M posted by RGA on June 25, 2017 at 06:47:32

"The reasons these companies are going out of business is because there aren't enough people with enough disposable income to spend the money"
That's actually not true. Retail sales in the US is growing 3-3.5% a year. If what you said was true then the amount being spent would be lower year to year.
Consumptions patterns have changed over the last 40 years. Instead of buying the goods and services aligned with your income - poor people buying deep discount, middle class buying mid priced goods and services, and the wealthy buying expensive stuff pretty exclusively -- we're seeing everyone seeking the cheapest possible goods they can deal with in most things, and then buying high-end versions of the things they care the most about. The only real difference between rich and poor in this realm is how high is the "high end" that they seek, and how much of the things around them can be "high end"
You see people who are poor with iPhones as one example, and clueless politicians not quite understanding this new paradigm making a fool of themselves with pronouncements that would only be valid in the 1950's and 1960's.
Agree that millenials are getting squeezed HARD with ramapnt housing inflation, as well as increased education competition driving both the cost of schooling through the roof as well as for jobs that arguably wouldn't need a 4 year degree.
And with consumption patterns changing to High/Low with no middle, you do see a sea of jeans that will rip in one season with no midpriced alternative that is simple solid and not fancy (though I'd argue Wranger and Levis still offer this, there are fewer now than back then).
The problem boils down to not having as many middle priced goods available forcing people who want quality to spend a LOT.

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Edits: 06/25/17

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