When it comes to their sales numbers and their future predictions, are retailers “terrified”? An article entitled “An emerging American trend is terrifying news for Macy’s, Kohl’s, and JC Penney” suggests that they should be. Another one says, “Kohl’s is getting crushed.” Also, “Macy’s offers an ominous insight about American consumers.” Another piece (without a sexy title, sorry) details the decline of high-end organic grocer Whole Foods.
So, what’s the deal? Is retail in decline? Or is it a certain slice of retail that’s in decline? The answers, it seems, are maybe and definitely.
Once again, the arrow points straight at the Millennials – people born since 1980 or so. They are becoming the dominant purchasing force in the economy – and they simply have less money to spend. Their money is going toward RENT, which is very high right now, and toward personal electronics.
The money they have left over is not going toward a $40 shirt at Kohl’s or Macy’s, or locally sourced/organic/free range/sustainable/expensive salmon at Whole Foods. They’re going to Walmart instead.
So, this might be troubling news for higher-end retailers, but maybe a good thing that the younger generation (which will soon be calling the shots) is getting smarter about spending? Maybe? I guess? What do YOU think? Let us know over at the MindField Online Facebook page, and have a great weekend!