blockbuster-mart 2

BLOCKBUSTER-MART 2

No one liked Blockbuster. They moved in with their corporate access to billions from the banks and bought videos by the pallet full, undercutting and putting Mom & Pop out of business. The small guys had to buy a $20 video where Blockbuster got them for pennies ( and shared the rent with the studio ). Blockbuster had HUGE overhead, and made every moronic decision possible, but they just stayed in business like Sears did, borrowing money until they couldn't. You kill a small business industry, then go bankrupt yourself, leaving a community with little or no choices after that.

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To be clear, the Big Box Store Business wasn't a terrible idea. It was perfected during a time oil was gushing and cheap, and computers and their networks were making globalized logistics affordable. It was China, Computers, Debt and Petroleum all offering heretofore unrealized savings. It really was a great deal for consumers. After twenty years of stagnant wages, consumers needed that break. And they went Full Retard becoming Yuppie Scum Junior Rangers ( copying the lifestyle they viewed with envy the decade prior ).

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The next decade, the banks blew one last bubble with real estate and consumers used their homes as an ATM to continue shopping at Big Boxes. It was good times ( recall the 1.8 cent rimfire round at Wally-back when they weren't Misfire Kings )! And then global Peak Oil hit. No, we didn't run out of oil-just the high net energy conventional oil. The economy didn't like that one bit, and popped the bubble. The Big Box Stores which had wiped out Main Street struggled to survive. Blockbuster was an early casualty.

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Not JUST because Netflix. Blockbuster followed the “stick a pencil up your ass and squat over a yellow tablet” method of budgeting and accounting. They only had themselves to blame. Netflix and Redbox just took advantage of them. And all they did, really, was just remove rent from their costs ( like Amazon is doing, competing with Wal-Mart ). Because even though we had a real estate bubble bust, the banks made sure rents stayed oh so very high. Commercial real estate went through the shoddy poor quality shingle roof. That was it for video stores, already suffering from Blockbuster, Netflix rentals and Wal-Mart DVD sales.

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Wal-Mart is suffering, already, from 2008, from expansion cost. When you expand, there must be an increase in customers. Even if your debt interest rates are lowering, even if all your costs are lower, you still need customers to enter and shop in that million dollar building with millions in inventory. When that doesn't happen, stores start into the death spiral of short term saving that kill future business. Look at Sears, dropping almost everything one item at a time to focus on higher profit clothing. They lost all the customers that bought everything BUT women's clothes.

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So when everyone else starts focusing on clothing, like JC Penney, and Ross and whoever, everyone steals each others customers. When I went to my first Family Dollar, they were almost ALL clothing. They seriously pulled back from that, and now are almost a mini Wal-Mart, but with more inventory with less rent ( and usually better prices ). The Dollar Tree corporation saw something good in them when they bought the company. Alas, they expanded as Wal-Mart was declining severely, and that SHOULD have been a good bet.

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But it backfired on them, as Wally temporarily shook itself out of its death spiral, and Family was stuck with the expansion costs. In a climate of severe customer contracting purchasing power ( remember that 40% real unemployment rate? ). Now you walk into a store and the too few employees cannot keep up with the mess and stocking the shelves. Prices are creeping up and quality is reaching towards Wal-Mart lows. Expansion Costs Plus Reduced Customer Spending kills the Big Box Stores.

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Wal-Mart only gave itself a temporary reprieve from its decline ( I don't know at what cost ). Then, because its corporate elite are all inbred Arkansas banjo players, it decided the decline wasn't fast enough and they said, if effect, we hate our poor rural customers who made us rich, and we STILL want to be just like Target ( like Texas envy among Oklahoman's, Wal-Mart has always had a hankering to be Target. I have no idea why ) and so we want all the hip urban Yuppie customers and so we will Virtue Signal that we hate guns and the Bill Of Rights. Stupid Constitutionalists!

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Well, there is only one small little problem with that. The poor is growing as a class, and Yuppies are in decline. No matter, says the Arkansas Mafia, the Yuppies are getting WAY more money. As the poor are being impoverished, the Yuppies pull in a bigger share of the economy. Even at a rate of shrink, the future bet is on Yuppies-soon, the working poor will just be poor and have no money, but Yuppies will. Screw Gun Owners! And you know what? Wal-Mart isn't wrong, from a pure economic standpoint.

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The problem is, every body else has the same idea! Yuppies will rescue us! It is the rush to only sell women's fashion, all over again. Wal-Mart is the new Sears. Not because of Amazon. Amazon loses money on everything tangible it sells, if nothing else on the reduced shipping. It profits handsomely off of its intelligence industry services, spying for the security state. That allows it to sell at a loss, which Wall Street loves, and Bezos can keep cashing in his stock for tens of billions a shot. When the owner is selling his stock, what exactly is that telling you? Hell, I wouldn't be surprised if he got divorced solely to trick folks into thinking he had to sell stock for the divorce cost.

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Ah, no. He is cashing out because he doesn't have a viable business. He might not have retail cost, but he sure as crap has inventory cost. The same cost Wal-Mart is desperately trying to reduce. No, the only way Amazon stays in business is to lose money. Wal-Mart only has itself to fear and to blame. They over expanded and over borrowed and they did enough stupid crap to increase short term profits to destroy themselves long term-Dead Zombie Walking.

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Who offers a pick-up at the curb service when your web site sucks, bogging down and with a search engine designed by a retarded five year old using crayons, eliminating impulse sales in the store and idling your employees inside? And that is just the latest brain fart. To go along with telling a good portion of its White Male customers it hates them because they aren't Progressive. Wal-Mart is doomed. With or without our help. And so, you are now at the point where the one budgetary item you could trim is going to suddenly increase drastically in the near future, with little warning ( except from here-you are welcome ).

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It isn't exactly a brain fart, what you need to do. It is really just what we already had been doing, before Wal-Mart. Buying in bulk elsewhere, buying through the mail, shopping at more than one place and only cherry picking the weekly sales at the Yuppie grocery stores. Continued tomorrow.

( .Y. )

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