No. of Recommendations: 2
Imagine if we were in a recession!The economy has been remarkably resilient. Seems like every time we think a recession is coming, one segment or another improves enough to bring the overall growth up sufficiently. The death of some retail was kind of foreseen with the rapid increase in wages for retail staff (it went from roughly $10-12/hr to $18-22/hr in less than 5 years). Stores like Party City can't afford to pay someone $20 an hour to blow up balloons a few times an hour, even if they charge $5 a balloon. Plus for non-real-time stuff (like balloons), they faced heavy competition, first from Amazon/eBay/Walmart, but now from direct-from-Asia (or direct from distributor) shippers at rock bottom prices. The same paper and plastic goods that Party City needed to sell for $5.99 a pack can be delivered right from the distributor in Asia for $2.99 a pack (or even less sometimes). And retail places have seen their rent go up a bit, and their insurance go up a lot, and all sorts of compliance expenses go up quite a bit. I wonder what will move into the spot where our Party City is located? Maybe a [two] dollar store or similar?
For example, I recently bought this pack of plastic dinnerware party stuff -
https://www.amazon.com/gp/product/B0D119P56S The equivalent at Party City would run close to, or maybe even over, $100. Why would I even consider buying it from Party City for over 3 times the price?
