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Mike Larson, Money and Markets columnist and editor of the Safe Money Report, is out today. Mark Najarian, the managing editor of Money and Markets, is filling in …
There was a time when people were saying that mega-stores such as Wal-Mart (WMT, Weiss Rating: B) were putting other, more-traditional shops out of business. Now Wal-Mart and many other similar big names are in danger of becoming the new “more-traditional”-type stores potentially being bested by the online mega-store: Amazon.
This week, CNBC put out a list reminding us of retailers that have gone out of business in recent years. The names were those that many of us grew up with. The likes of Circuit City. CompUSA. Blockbuster. Borders Books & Music, Tower Records, KB Toys, Woolworth, Mervyn’s just memories now.
It’s possible many other brick-and-mortar stores will join that list in future years. Which ones? Most likely, the companies that sit around and complain that Amazon and other online sellers are destroying their businesses and then do nothing about it. The ones that live on will be the ones that can beat Amazon and other online retailers at their own game. The ones that will use their physical properties as showrooms that allow shoppers to easily buy goods at the cashier or with Wi-Fi connections in-store or allow them to pick out products that they can purchase online at home — not on Amazon but with the shops’ own websites.
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“How effective the changes will be is one of the most intriguing developments in the retail sector.” |
Wal-Mart certainly isn’t in danger of joining the list of former retailers. Nevertheless, it can’t stand still if it wants to grow, and it appears to be looking to battle Amazon head-on. (A sign of how well Wal-Mart has been doing recently will come Thursday, when it reports quarterly results. Its performance could have an impact on the entire sector, and analysts are looking for a slight decline in profit.)
This week, it announced that it is rebuilding its website to make shopping more personalized and simpler. The changes start in August and others will be rolled out in the next few months. It’s a major revamp, with changes being developed by Wal-Mart’s @WalmartLabs technological division.
The initial changes, the company says, will allow the website to show shoppers more products that are linked to their previous purchases, and will customize the website for each shopper based on where they live, with weather reports and local events.
How effective this all will be is one of the most intriguing developments in the retail sector. Other retailers — brick-and-mortar drugstores, book shops, sporting-goods stores, etc. — will be watching carefully to see how successful this effort is and whether they match or surpass the strategy of Wal-Mart — a chain that has revolutionized retailing more than once in the past.
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| Wal-Mart hopes that a revamped website will allow it to compete more effectively with online retailers. |
Just yesterday, Google (GOOG, Weiss Rating: C+) and Barnes & Noble (BKS, Weiss Ratings: C-) started a service that allows book buyers in Manhattan, San Francisco and Los Angeles to get any B&N item delivered the same day through Google Shopping Express, a direct challenge to Amazon. How will other retailers, such as Target Corp. (TGT, Weiss Rating: C+), and legendary retailer Sears Holdings Corp. (SHLD, Weiss Ratings: D) respond? Which retailers do you, as a shopper, think are best-placed to remain relevant in the future and what do they need to do to keep you shopping with them instead in this new era?
In a recent Money and Markets column, we received many comments from readers who love the shopping experience of Amazon. Although, interestingly, most said they wouldn’t invest in Amazon, which posted a $126 million loss last quarter.
What about you? Do you prefer to shop with Amazon? (Disclosure: I use Amazon — A LOT!) Or would you welcome the chance to browse bookstores, electronic shops or clothing stores in person, then connect through in-store Wi-Fi and buy online through that individual store’s site?
What does a store like Wal-Mart — or any of the other now-traditional physical stores — need to do to win you over from an Amazon? I am interested in getting your viewpoint. You can join the discussion here.
| OUR READERS SPEAK |
My colleague Mandeep Rai’s column yesterday on the jobs situation drew a heavy response from readers. Many lamented the lack of growth in high-quality jobs, something that could clearly be seen in the most recent government numbers.
Reader Mitch said: “The temporary jobs hiring with its low pay and no benefits covers most employment in the workforce hiring today. … Any hiring is in the service sectors, period. We know what they pay.”
Hi, Mitch. Thanks for your comments. You made some good points. What do you, or anyone else, think is needed to get American companies to add full-time, quality jobs? — Mark
Another reader added: “Back in the 1970s and 80s when jobs were going overseas, and we were promised they were the bad jobs that no one wanted, I knew we were headed for trouble. And here we are.”
Reader M relates a personal story: “After being laid off a year ago I’ve only found one month’s work. Luckily I’ve saved enough money to live on. Calling it early retirement, at a very healthy 62. If the stock market crashes I will be in real trouble. … One day at a time now. Helping at the local food bank has shown me how bad it really is. More people show up every day.”
Hi, M. I was wondering if you would now prefer a full-time job in line with what you were previously doing or, given that you say you’ve saved enough money, would you prefer to remain in “early retirement” and continue volunteer work? It can be a tough decision — enjoy being out of the rat race or miss the challenges and financial security of full-time work. — Mark
| OTHER DEVELOPMENTS OF THE DAY |
One dramatic development is on the minds of a lot of people right now, so we’ll stick to that story today.
 U.S. warplanes bombed Islamic fighters who were advancing on the Iraqi Kurdish capital of Irbil, a day after President Obama authorized limited airstrikes to protect U.S. interests there. The militants had moved to within a half-hour’s drive of Irbil, according to Reuters reports.
The move comes after the advancing militants in northern Iraq forced tens of thousands of Christians and other members of Iraqi minority communities to flee for safety.
U.S. troops pulled out of Iraq in 2011, but there are American military and consular personnel in the Kurdish region.
What’s your view on the latest moves in Iraq? Should the U.S. use airstrikes to protect U.S. personnel and religious minorities in that country? Or should we restrict any action to the rescue and extraction of U.S. personnel? Will this all lead to “boots on the ground” in that country?
The president has vowed that no ground troops will be sent to Iraq, but obviously nothing is 100 percent certain in a war zone. These are all important questions, so let us know what you’re thinking about this situation and any other items by clicking here.
Best wishes,
Mark Najarian
(Mike Larson is on assignment. His regular afternoon column will return Tuesday.)
P.S. Our Top Stocks Under $10 service recommended buying WRES at $2.93 a share last September. Now it’s around $5.80. Another recommended stock was up more than 11 percent — yesterday alone! To get onboard for our next picks, click here.
{ 42 comments }
Kill ’em all – ISIS that is.
If ISIS strikes US interests somewhere in retaliation for our air strikes then we may see boots on the ground. I have a son and son-in-law that served in Iraq and both expected to see the government collapse, stating that the only reliable military units were those formerly associated with the republican guard and they are Sunni so with the existing political issues, not much help for the government.
ONLY QUALITY BUSINESSES CAN GROW IN THIS SLOW ECONOMY
Local retailers here in Glendale, CA that are doing relatively well each offer quality customer service. A willingness to assist, as well as sufficient staffing to permit individual service and attention is how they can compete with online retail giants ( competitors). Offering limited service and regular (high) prices for walk-in retail customers is how companies lose business. Eventually, they cut staff and hours, then employee pay, and finally, they are down to “lean and mean”.
In response, retail customers leave and instead go online for convenience, and better selection and prices. Poor customer service is really no service at all or worthless value for someone like me. I don’t need/want them. We live in an age of self-service anyway. Businesses that fail to recognize their primary advantage is superior people rendering superior, high quality in-store service won’t last long in a slow-growth economy. They will eventually fail to grow their business or go out of business. Believe it or not, some small businesses around here ( European Bakery) don’t much care about the growth part. Amazing. Truly European attitude ( Belgian, specifically).
They will have to beat Amazon’s price and delivery and not gouge on S&H to try to make up for lower cost …
I THINK THE UNITED STATE , SHOULD GIVE ISREAL,A AIRCRAFT CARRIER,UNDER THIER OWN FLAG. AS WELL AS SUPPORT THE CURDS.
Amazing that a little country like Israel has for over 60 years stood up to so
many nations out to destroy them and never once having a US soldier to help them–
is testament to brain over brawn and courage in the face of hate.
For me, I am not one to like to go “malling” or long shopping trips-(Unless I’m with my daughter). Even my grand kids & my son-in-law dread going shopping with her! (LOL)! I do not care for crowded stores, & if I do venture out to one, and the product that I need is OUT OF STOCK, I am done! I will not go back to that store unless I just absolutely have no choice!! Also, if the prices are too high, even though I can take it home right then & there, I will order it online and continue to do so. If they want me to buy from their brick & mortar stores, then make it worth my while, because they already know that I have other CHOICES! My suggestion is that they should either set their prices lower, or at least the same as the online retail stores! Money is tight & times are hard–I’m going to be careful where I use MY card!
I too shop a lot with Amazon but also with Walmart on-line. What I have found is that Walmart has deals on-line that are not available in the store (some product selection differences and some items with better prices) and they will either free ship to home or store on most items. The big difference on bigger ticket items is sales tax, 8% with Walmart and 0% with Amazon. When (or if) the sales tax savings goes away I don’t think Amazon will have much advantage. One last thing I have noticed recently with Amazon is that their prices are not as competitive as they were at one time and it may now pay to use Keepa or Camel to watch prices…I never did that in the past but plan to start.
You ask, “Should the U.S. use air strikes to protect … religious minorities in that country?” Well, if that should happen, it would surely be a reversal of U.S. policy. The last two administrations destroyed secular leaders that protected minorities, armed rebels and laid the ground for persecutions.
AMAZON’s Customer Service is superb. You can click a button on their website and they will call you almost immediately and then send a follow-up e-mail to see if they solved your problem. Walmart’s Customer Service is non-existent. I have NEVER been able to reach WM-CS by phone. WM’s e-mail response appears to be from a script. My 1st choice is always AMAZON, then I will try elsewhere if they don’t have what I want or if too expensive (rarely). Bezos focuses on the customer (me)!
On the Iraq situation, we created the problem there by attacking under false pretenses and destroying the country and its leadership. We must now continue to protect those we left defenseless and vulnerable.
If ISIS strikes US interests somewhere in retaliation for our air strikes then we may see boots on the ground. I have a son and son-in-law that served in Iraq and both expected to see the government collapse, stating that the only reliable military units were those formerly associated with the republican guard and they are Sunni so with the existing political issues, not much help for the government.
Nordstrom has already joined the ranks of hybrid retailers. More often than not, especially with women’s shoes, the desired style and size is not found in the store. However, the product once purchased, is shipped immediately from their warehouse and arrives within two days. If there are any problems with the item that was delivered, Nordstrom addresses that immediately and sometimes with a discount on the price or added store credit points. This I would say is the future of merchandising for the buyer public that likes to handle the product prior to purchase and the retailer that is trying to cut costs and overhead expenses.
I placed myself on that mountain in Northern Iraq with my wife and children, people dying of thirst all about me, children hungry, and being shelled by that ultra radical ISIS group of sons of the devil. The answer was then obvious to me. We cannot sit back and allow these people to be slaughtered. I am 100% in favor of bombing ISIS out of existence. And, as of today that is what is happening. Hit them hard, hit them often, destroy EVERY means they have to wage war. If we do nothing now, we will SURELY have more to contend with in the future from this terrorist group of hyenas.
I am only rarely on on line shopper and more rarely use Amazon. So your question is backwards for me and Amazon, the question for them being what could thy possibly do to get me to use them. Maybe come and measure me for suits or send molds for my feet if they want to sell me shoes, but even then how do I know I will like the touch a feel of the fabric? i do not like to go to the UPS store for returns, and rarely have a returns if I buy at brick and mortar stores.
What we have in Iraq is a religious war. ISIS has boots on the ground, and air power can hurt, but not beat them. It will take more boots to throw them back – ours or someone else’s. I understand the Kurds are Sunni, though not as strict as Isis. It’s why they didn’t get along with Saddam, and the current Shiite regime. Turkey? They have trouble with their own Kurds. The Peshmerga (Sp?) are tough fighters, but so, it seems, are ISIS – and supported by the Saudis. Do we really want to get mixed up in a religious war over there?
The battle will always be the price and brand name of the product. And also the shipping cost, time of delivery.
May I suggest the program developed by Pea Pod. It’s efficient, cheap and keeps track.
Amazon drives me nuts with all they expect me to read – and “suggesting” what I might like. Interminable pages of suggestions. Good Grief! If I want something I’ll make up my own
list.
I do shop Amazon, primarily for electronics and Kindle books.
I was sorry to see how poorly their profit picture looks. It is hard to even imagine since the web site is huge although many sellers there are probably relatively independent vendors.
For clothing and shoes, I will only buy in person after I check how it fits.
Drones and air strikes only
I believe we should stop pussy footing around and go in full force like in WWII . Send in all of the services plane , heliocopters , tanks , armored personnel carriers , armored , trucks , and then the infantry , and marines . Take out the all forces against the U.S. the aggressors in Iraq and move on to the next arab country and do the same there and the next until there in no one wanting to cause trouble again . If anyone in those countries decide they hate what we did and still wants to kill americans put them in prison .
HI Lawrence, I think Hitler had roughly the same idea,But why is America poking their nose into for,its their mentality,unfortuneatly you cannot kill that,So save yourself some bucks and lets them do the job themselves,then America cant be blamed
I get turned off when I have to add shipping, which narrows any benefit. I can avoid shipping if I pick up an item at WalMart. Returning an item purchased on line.
I get turned off when I have to add shipping, which narrows any benefit. I can avoid shipping if I pick up an item at WalMart. Returning an item purchased on line.
The problem(s) in the middle east are the doings of the American government of President Obama. You CANNOT give democracy to a people who don’t understand it, and in-s0-far as it affects the relationship these men have with their women. They are NOT interested in women’s rights, and they never will be. I don’t understand how the US believes it can “give” democracy to people who don’t understand it, and really don’t want it.
The problem(s) in the middle east are the doings of the American government of President Obama. You CANNOT give democracy to a people who don’t understand it, and in-s0-far as it affects the relationship these men have with their women. They are NOT interested in women’s rights, and they never will be. I don’t understand how the US believes it can “give” democracy to people who don’t understand it, and really don’t want it.
Problems ? in the middle East ? COMEON ??? The folks there have been fighting each other for at least 4000 years, I ask the question? What’s the real point of “intervention” ? NO ONE knows! not even the EXPERTS! That’s why wars and conflicts of no sense continue. Never will there be a stable peace until ALL jealousy, dominance, and personalities of people and Nations are set aside for “logical/analytical” decisions. SORRY FOLKS > IT AINT GONNA HAPPEN ! > Just make the best of it > AND it’s worse when the current administration has demonstrated nothing but INEPTNESS !
Investing in any of the retailers in todays market is like playing roulette. You may be a big winner if you pick the right number, but the odds are 37 to one you will be wrong. Good luck!
I feel that the future of retail shopping for the successful brick & mortar stores will be those establishments that have an online store, supplemented by shipping from the area they have their brick & mortar stores or district warehouses located at closest to the ordering online customer. The brick & mortar stores will continue to be needed for customers that desire to kick the tires first by looking & feeling the actual product before they decide they will be satisfied buying it slightly less online compared to the store price which should not be more than 5% or 10% maximum higher in price than online. To justify that higher store price, requires excellent customer service using intelligent, well paid employees to be successful, both online & brick & mortar levels. While I have learned that amazon & others are using or planning to use robots for fulfilling orders and computers to talk to customers in the future, I feel that the fall back to using humans for customer service & contact will be the real point of where the real successful stores will occur for retail. I have online shopped, however I do prefer when serious expensive shopping is to be done, that I go to a brick & mortar store to look the items quality & features over good first. The discount price on online will cause me to then buy there, otherwise, If the price is the same at brick & mortar, then I will buy there if they located in my area. This is the retail strategy, I feel will be the winning approach for the successful retailers in the future.
I will not buy from Amazon as I want to be able to feel the product and see what it about so that I would not ship it back because it not what I want. Besides if everyone went to on-line shopping, what would people do for a living as retail stores would close more unemployment, no people contact, nothing to do but be on-line. As for investing I have heard that some accounts of owners that die are taken over by either Wall street or government and not given to the family
I have traveled over 16 countries in this world including the middle east in my lifetime. The middle east countries have been killing each other due to their religion rivalries, during much of those many years. They have mostly been ruled by two-bit dictators, or power-hungary crooks if one is honest about it. I have spoken with a number of informed muslims about their religion and Quran writings. I have asked the question “Why does the Islamic religion espouse killing anyone who is not a muslim?” (Infidels) While I did get responses like: “Those are our very radical muslims or we all don’t feel a good Christian needs to be killed if they believe in Allah.” However, it is in the Quran to do just that– kill infidels. I mentioned to no real positive answer to that point. I feel having read the history on Mohammed, that during his lifetime, fellow muslims tried to kill him many times and did eventually poison him, that Islam is more an ideology than a religion. God would never approve of killing fellow muslims and Christians by muslims, nor treating women as slaves. etc.
To sum up: The U.S is best served by having tried to democratize the area to no great success over the last 50 years and it is now in our best interest to get out of being the policeman and main humanitarian to those countries where they continue to live by tribal laws and very corrupt leaders. It would take at least three generations to change the muslim people’s character in a more positive way to be more democratic in a real way and to work as a harmonious population for the greater good of all citizens in their countries, regardless of religion or tribal area they were from for the real growth & prosperity in their countries. They are still thinking & living the medival stone -age lifestyles. They have the natural resources to change things for the better, if they can find and keep alive good forward thinking leaderships. I don’t see it occurring in my lifetime or the next generation either. The idiot we have for our current leader is not going to really do any wise change either. Let Europe, who has benefited the most from the area get off their socialist horse and help change the area for the better, without letting their greed get the best of their efforts in this regard. The U.S. should get out, we are not going to change Afghanistan or Iraq mindset much in the next years to come. Cut our losses and get out, unless we are attacked, then go in to really win and throw political correctness in the trash can where it belongs. We can trade with those countries, as they love our products and make sure we are paid for them for what they can sell to us. No more grants & foreign aid to these countries which only helps enrich their corrupt leaders & terrorists in those countries.
Ole Man, just a question. How may generations do you think it will take for OUR corrupt politicians to start working for the greater good of all U.S. citizens?
Not being able to see&feel a product I’m buying is a big negetive for me. Returning unacceptable merchandise by mail is another.
The use of force should be deployed only to protect economic and national security interests. IMHO Obama made a concession to Europe to use force against ISIS to get them to agree to tougher sanctions on Russia. If there was no oil in Iraq, the US would not be there.
They have to provide Better Customer Service And cheaper prices to beat Amazon
I buy there often the only thing if you want to post a Bad or beat up package at arrival …Amazon Won’t let you post it
Which is Not right to block it
T A K E H E E D! It’s very simple. Read Larry Edelson also of Money and Markets. Larry has a very extensive story about the situation in Iraq.
As far as Wal-Mart goes or what any particular person thinks of Wal-Mart. I personally do not shop there and do not use their web-site, but i support their right to business. And there were surveys and polls taken in the past whereby a majority of people said they are against Wal-Mart but continue to shop there??????!!!!!!
On the other end of the issue is Amazon who’s profits for several consecutive quarters have been in the loss column. How long will Amazon be able to maintain this loss-leader position?
I think all of us have at some time or other used Amazon, it’s great for one-stop shopping and the prices are generally competitive, but the one thing that gives Amazon an unfair advantage is that they (and eBay sellers, and many other etailers) don’t collect taxes. There have been many arguments around this, but bottom line is that online retailers – especially Amazon – unfairly benefit because they don’t collect taxes, making the online purchase price less, and sadly, most of us see no problem with basically breaking the law when taxes aren’t paid for goods purchased. (How many people are actually fessing up to their online purchasing when they fill out their state income tax forms in April?) Wal-Mart and other brick and mortar stores do need to reinvent themselves to keep pace with changing technologies, etc., but I think if people owned a retail store and were competing on already thin margins and then have to lose out because etailers don’t collect tax, making the puchase cheaper online, they might change their viewpoint on this issue.
I too am tired of the U.S. involvement in the Middle East. We have spent our blood and treasure in attempts to free Muslims that largely did not appreciate the effort. Indeed, many gave us nothing but bullets, bombs and death back for our interest. Most of these people need several hundred years of evolution before they can ever leave their terrible state of affairs. No man, or nation, can be forced to better himself or itself. To succeed, democracy and freedom must be desired by a majority and it certainly cannot be held in utter disdain by a significant plurality. Such is simply NOT the state of affairs in the Muslim world. And…..it is most unfortunate that we have seen in our current and past president two men that just did NOT understand this. George W. Bush and Barack Obama have been two men of poor if not very poor capabilities — and they have been in charge in times when we needed America’s best.
Al Qaeda was a threat to the security of the West and the United States. ISIS could be an existential threat to western civilization. The United States threw away money building roads, bridges, schools and other infrastructure in Iraq and AFG just to see their people blow most of it up. They simply did not appreciate any of what we did….at least most of them. I predicted that from the start. The bottom line now? We need to carefully expend our limited resources by hitting ISIS from the air, stealing their financial resources, and attacking them in every covert way imaginable. We need all of our leaders and all of our military to read the teachings of Sun Tzu. We simply MUST start to fight these mass murderers more intelligently. If Assad is fighting ISIS, we need to let him hit them……and maybe even help him with intelligence and in other ways from time to time. ISIS and the Caliphate ARE an existential threat to the West. Europe will face grave danger within 2 years. Now, their numbers are relatively small. But ISIS will grow and grow VERY LARGE. Young muslims will flock to this successful but very evil, dark army and state. ISIS will be a JUGGERNAUT.
Tom, in reply to your question on U.S. politicians? I knew and had a talk with Sen. Lloyd Bensen, in the early yrs. before he announced his failed intention to run for the presidency. I asked him this question: “Why doesn’t the Senate and congress also do preventative legislation, on societal & global trends that one can see is festering , while the costs would be less to do now, than the 4 to 6 times it would cost after the trend has exploded into a major castrophe”? He replied “The American people not feeling any personal pain at that time, would kick up out of office.” “It is only after we individuals personally feel the pain of this trend change and then demand that Washington do something about it— can we spend these large dollar amounts and do the real change for the better and be re-elected to office.”
I think this mindset is the real problem of our Politicians. No guts or backbone of a real leader to doing what is in America’s best interest, even if it means not being re-elected, due to the stupidity of many ill-informed & illiterate voters in our country, that Obama wants to increase by granting amnesty to law breakers, who will not get a green card to work legally in our country. I currently am watching Dr. Ben Carson, M.D., who is intelligent, has America’s best interest in mind and does not want the job of President, unless the people demand he run and then clean house in Washington, with non political business, retired military & other good people with good common sense. If you feel the same after buying his book or hearing him in the limited media exposure, then support him and vote. In my opinion, both parties have failed the American people the last 13 yrs. and it is time to put new blood in Senate and congress.
Our enemies are well defined…stop pussyfooting around and face them head on and
level them. Gov should stop making statements like “no boots on the ground” and
face fact that boots will go on their necks when needed…we need to be clear and assertive
and act as we see fit and let our enemies know that we will act when needed. Like it or not America is the only world power that can face Putin (Russia) and Islamist militants and back
them down. America is an amazing country with fantastic people but whose quality of
leadership presently leaves something to be desired, This will change and the people
will change it as our past history has shown.
The Russian truck convoy of relief supplies will be of significant benefit to the recipants
We Americans need to get beyond surpressing their enemy to make a broader impace
I wrote to Target Management, I guess I scared them because the Chief Information Officer and the CEO quit or were fired shortly thereafter. I said that their biggest threat is not Walmart or Dollar General or K-Mart, it’s Amazon.com and once Amazon can get drones to deliver packages their cost is not the usual shipping charge, it’s the 20c an hour in electricity a drone uses, and if places like Target don’t do things to make shopping more pleasant, Amazon is going to eat their lunch. I got ignored, it was like nobody cared, so I bought two shares of Target’s stock and requested the list of stockholders in order to solicit proxies to put up my own slate of directors. Someone who wants to see Target do better has to step up to the plate, and unfortunately it looks like that someone just might be me.