Future Bleak for Wal-Mart, Kmart, Radio Shack – Big Box Store Model Momentum Shifts

As our economy slides further into the abyss, the era of the huge mega stores will slide as well. You can put the blame squarely where it belongs, the printing of funny money which in turn killed the dollar. This will spell the end for the huge box store phenomenon that has grown like a cancerous growth, previously taking advantage of the easy credit and trade agreements with other countries that has basically enabled these monstrosities to fester for the last 25 or 30 years.
Because of our collapsing economy the middle class are just not buying like they used to. When you have huge gas price increases such as we have seen over these last months, together with the middle class disappearing, you can start to see why. Trucking will see a huge loss in independent operators because of the insane fuel prices. This in turn will hurt the distribution needs of these huge stores along with the easy credit needed to run them. The current economy cannot support this model any longer.
Trucks are basically a warehouse on wheels, a well timed system to further profits to the supplier and seller, cutting warehouse cost down dramatically. 2 million trucks a day command our roads to accommodate America’s distribution needs.
The good news is that this will eventually enable young upstarts to regroup into mom and pops again giving the American middle class a chance at redemption as the huge box store chains start to fall. Already, this is starting to happen. Wal-Mart, Radio shack and Kmart are closing stores because of the picky buying attitudes of the middle class. Soon we will see huge distribution centers along with supercenters sitting empty which originally cost billions to build.
These huge distribution centers were financed with banks that bundled toxic derivatives to further the credit scenario, something that was basically a “Three Card Monte” scheme that was destined to fail. These huge monoliths cannot survive without credit, suffice to say the “Three Card Monte” has just been shut down.
Again, what comes around goes around. Young families from all over our country will have a chance to start where they left off by building a future for themselves and their children. New stores will start to pop up as these huge monoliths start to fall. It’s only a matter of time. It might be years in the coming, but there is light at the end of the tunnel.
What will become of the huge distribution centers and supercenters that will be sitting empty; once filled with trucks and forklifts running around like a well run ant farm? God only knows…