Macy’s, Kohl’s and Nordstrom are retailers that recently reported disappointing sales and declining store traffic. Despite consumers’ appetite for spending and borrowing growing once again, retailers are wondering why they’re not drawing in shoppers like they used to.
And this isn’t a matter of customers avoiding brick-and-mortar stores. Shoppers aren’t filling up their digital shopping carts either.
So what’s going on exactly? Newsmax released the results of an informal survey with retailers and industry experts who look closely into this kind of thing. Here are 12 reasons retailers say are the cause for sharp drop in retail sales:
– Millennials have become cautious of their big-spending baby boomers.
– There are just way too many physical stores in the marketplace.
– Today, you can pretty much purchase anything online.
– Consumers care more about experiences than anything else right now.
– Fashion and style trends are constantly changing.
– People don’t feel rich anymore.
– Shoppers prefer to purchase big-ticket items than small stuff like clothes.
– The politics of it all suggests consumers don’t feel trustful.
– Consumers have to focus all of their extra income on bills, debts and other obligations.
– Let’s face it: many old brick-and-mortar stores are dull.
– It’s all about priorities for consumers nowadays.
– There are now two types of consumers: The Old and The New; the former borrows and spends; the new cuts back and saves.
There you have it. These are reasons retailers say are driving down sales.
They missed a big one. As more boomers enter retirement spending goes down. No need for new clothes for work. Less miles traveled each day, cheaper to just stay at home. Income for most in retirement goes down, so only spend on needs not wants. You have to save where you can, you might live into your 90’s and need the money.