Labor shortage. Retail in trouble.

[GordonJ]

OH my goodness. My corner convenience store, a Circle K, was closed due to lack of help. For almost a full day.

They are running out of people. And the replacements are the ones who least fit into a retail environment.

Of course, most entry retail jobs suck. Low pay, long hours, no vacation time, etc.

My local Discount Drug Mart, a Northeast Ohio chain, spent several million dollars over the last couple of years upgrading the store...and today, IT SUCKS.

For one reason. CRUMMY employees. I mean, I had to disturb a cashier who was putting on fake nails, and she seemed perturbed that I wanted to check out. Today, long lines, few registers open, a nice looking stocked store where people don't want to go anymore.

We are having a labor shortage, at least for crummy jobs. I think this is fueling the underground and shadow economies, and more and more

Sanfords and Sons

Are popping up (an old TV show reference with Redd Foxx)...the pickup trucks are full of salvage these days.

Covid didn't help. Amazon and online ordering is now a mostly preferred way to shop and if the retail stores with doors still open continue to get people who really would rather be doing something else (and who could blame them?) then expect to see some MORE big name store closings in the coming months.

Gordon

[MikePT]

My business BOOMED at beggining of Covid last year. Like March.

Maybe this Covid would accelerate to more people start buying online and those who already bought to buy more?

Maybe this Covid will low rents for physical businesses?

[GordonJ]

Originally Posted by MikePT

My business BOOMED at beggining of Covid last year. Like March.

Maybe this Covid would accelerate to more people start buying online and those who already bought to buy more?

Maybe this Covid will low rents for physical businesses?

In the U.S., there often are incentives left on the table for building owners to keep their spaces vacant, it sounds nuts and crazy, but it is true.

It is like a plain donut with sprinkles and chocolate on them.

A plain doughnut costs less, is more profitable, but almost every donut maker in the world runs out of plain and throws away the sugar covered ones. Drives me crazy.

But this past year, has changed things. We are looking at 3 recently vacated spaces which the owners are accepting offers, so it is a good time to get a brick and mortar thing going, if one gets great terms and has something people will leave the house for.

So, I would advise anyone to keep an eye out for space, get to know the local areas, and try to catch the wave at the beginning. As an example of that, there is in Akron, OH, and older section in decay, it is North Main Street going into Cuyahoga Falls.

That part of main street in Cuyahoga Falls, is known as State Road and it too is an area in decline and decay.

Just this week, there was an announcement of a 14 million dollar street improvement in Akron, which will benefit Cuy. Falls too, so if one were to catch this wave now, in the next 3 to 5 years, they could have a really good return on investment of either Real Estate or location.

Good time to look at vacant space IFFIN, your idea is well thought out and properly funded (not leveraged with loans).

Gordon

[GordonJ]

Zumba, pole, belly dancing.

Yoga, exercising, martial arts.

A few tables and chairs; a learning center, training of all kinds.

A few bookshelves; a reading room, library (membership), meeting area.

There are scores of businesses which can easily and quickly go into vacant spaces, often for very little renovation. Just use the space.

Now, as it always is, getting customers in the door is the CRITICAL function, and if addressed FIRST, instead of last...a lot of potential in a vacant space, isn't there?

Gordon

[Dien Rice]

Originally Posted by GordonJ

OH my goodness. My corner convenience store, a Circle K, was closed due to lack of help. For almost a full day.

They are running out of people. And the replacements are the ones who least fit into a retail environment.

Of course, most entry retail jobs suck. Low pay, long hours, no vacation time, etc.

My local Discount Drug Mart, a Northeast Ohio chain, spent several million dollars over the last couple of years upgrading the store...and today, IT SUCKS.

For one reason. CRUMMY employees. I mean, I had to disturb a cashier who was putting on fake nails, and she seemed perturbed that I wanted to check out. Today, long lines, few registers open, a nice looking stocked store where people don't want to go anymore.

We are having a labor shortage, at least for crummy jobs. I think this is fueling the underground and shadow economies, and more and more

Sanfords and Sons

Are popping up (an old TV show reference with Redd Foxx)...the pickup trucks are full of salvage these days.

Covid didn't help. Amazon and online ordering is now a mostly preferred way to shop and if the retail stores with doors still open continue to get people who really would rather be doing something else (and who could blame them?) then expect to see some MORE big name store closings in the coming months.

Gordon

Hi Gordon,

I think, like you, I personally don't really like being an employee, so I don't really have a lot of solutions for them...

My solution is essentially to get out, try not to be an employee, and go make work for yourself if you can!

On the other hand, there are various motivational techniques which could help in motivating employees to do a better job...

I'm constantly reading about the topic partly because I like to use it to try to motivate myself.

Best wishes,

Dien

[Millard Grubb]

I don't know if a labor shortage or just a way to save a few bucks changed the way to buy groceries here.

The large Walmart changed the checkout process where EVERYONE has to self checkout their groceries. Pull your cart up... scan your item... place in bag... next item... etc. Then check yourself out. Even with a LARGE area set up so that people can do all the check out work themselves.... long lines back up. Most people are not used to scanning and bagging, etc. A LOT of grumbling from most everyone.

So... I go to a small grocery store... and they have done the same thing there too !

Sheesh !

Maybe these things are a way to cut costs of labor or maybe people don't want to do "menial" job. Who knows.

In any case, going to the grocery store is just one more thing that's changing.

[GordonJ]

Originally Posted by Millard Grubb

I don't know if a labor shortage or just a way to save a few bucks changed the way to buy groceries here.

The large Walmart changed the checkout process where EVERYONE has to self checkout their groceries. Pull your cart up... scan your item... place in bag... next item... etc. Then check yourself out. Even with a LARGE area set up so that people can do all the check out work themselves.... long lines back up. Most people are not used to scanning and bagging, etc. A LOT of grumbling from most everyone.

So... I go to a small grocery store... and they have done the same thing there too !

Sheesh !

Maybe these things are a way to cut costs of labor or maybe people don't want to do "menial" job. Who knows.

In any case, going to the grocery store is just one more thing that's changing.

Thanks Millard,

My Walmart has done the same thing, not only do they save (over time) on payroll but it eliminates the LIABILITY of exposing employees to Covid like diseases.

Can you imagine the costs Walmart had when their cashiers got sick?

In today's litigious world, eliminating as much liability as you can is a corporate mantra.

In a year, people will wonder why they ever used a cashier at all.

Gordon