Death of Brick & Mortar Retail

Think of retail as a highly leveraged bank/hedge fund with a 30 times leverage ratio.

Most retailers have less than a 5% margin. Sales have to decline about 10-15% and the whole thing collapses.

Think of Walmart for e.g. Imagine, the shoe rack disappearing (Zappos, ShoeDazzle etc…), then DVDs (Netflix…), then clothes & so on…

All it needs is small changes at the edges & that leads to a product death spiral.

The broader impact is even more fascinating:

  • What happens to malls that rely on retailers as anchor tenants?
  • What happens to the suburban lifestyle?

More here:
https://cgviews.wordpress.com/tag/retail/

http://pandodaily.com/2013/01/30/andreessen-predicts-the-death-of-traditional-retail-yes-absolute-death/

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