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Opportunities for Big Box Craft Stores.

Discussion in 'Picture Framing Business Issues' started by DVieau2, Sep 11, 2016.

  1. DVieau2

    DVieau2 SGF, Supreme Grumble Framer

  2. simplymatted

    simplymatted MGF, Master Grumble Framer

    Yahoo says the page youre looking for is gone. Replaced with a 4th grade teacher wearing a shirt. Its clingy and people complaining, except the boys in her class.
     
  3. DVieau2

    DVieau2 SGF, Supreme Grumble Framer

  4. Joe B

    Joe B SGF, Supreme Grumble Framer

    Now it's a "curvy model that struts her stuff".

    Closing of anchor stores has been going on for a few years now but more in the micro malls setting versus the major malls. The large malls with heavy hitters anchor stores like Penny's, Best Buy, Macy's to name a few are not having many problems, in fact from some articles I have read, it is the large malls with big name anchor stores that may be causing the downfall of the micro malls. That is understandable considering that people are more rushed today and want to go to one location to do all their shopping. Also, online buying is really hard on the smaller stores that generally occupy the spaces in the micro malls. I guess the future will tell the complete story.

    There are a few of the large anchor stores like Macy's that are closing some of their stores that are less profitable but overall they feel the climate is good for future growth in certain areas - what they mean by that I don't really know but again, the future will tell the complete story.
     
    Last edited: Sep 16, 2016
  5. Bob Carter

    Bob Carter PFG, Picture Framing God

    i'll share a little of what I remember but the longer I am away, the more I am giving my opinion

    Virtually every property has a 'shelf life'; some don't. If you look at 'closed' Big Boxes or depleted regional malls, they tend to be in 'past prime' neighborhoods. Several things happened. Styles of houses change; amenites become more important. More 'affluent' homeowners move out to newer, mor modern 'lifestyle' housing developments. Those left behind may not be able to leave financially. So, the less 'afluent' residents stay, their kids grow up, move out and away. The 'left behind' consumers grow older, shop less. A mall needs younger shoppers and mor affluent shoppers. Reason One stores close. KMart and Macy's aren't closing productive stores

    The old adage used to be the 6 Hour cycle. Imagine a clock starting at 9 and going to 3. Malls would break ground at 9 called 'born'. Property usually pretty underdeveloped, housing, other businesses would come in and about 10 was called pre-peak growth was good tenants happy between 11 and 1 was Peak and life was good. That span might 10-15 years give or take. Then neighborhoods change, newer subdivisions get built further out and newer retail follows affluent markets. Property sees 1-1:30 phase called Post Peak and that decline can be pretty rapid until you 2:30 -3 and its Post Mortem

    Great properties/ neighborhoods can delay/defy the clock, but many more don't and that's where you see the Macy's and KMarts closing.The ral estate guy that said te attraction of closed KMarts is great locations might not be very accurate

    Look into your own towns, and possibly your own stores, and see where they are 'on the clock'

    Make no mistake, issues like economy, changing consumer habits and internet all have an impact

    You may find some neighborhoods/properties that have overcome the 'natural' but t hey really are exceptions

    Our very best store was Paradise Valley Mall , $400sqft sales. Today it still has 4 majors. The fifth closed a few years back; Costco took space. Our store location is now a temporary wig store. Across hall was flagship GAP wiit Baby GAP, Kids Gap, Reg GAP and Lingerie Gap under one roof. Today, gone. But for 25 years, property was in Peak mode. It's about 35 yrs old

    Things change and I'm not sure Opportunity would be my word of choice
     
  6. Ylva

    Ylva SPFG, Supreme Picture Framing God

    I feel that for big boxes like Macy's, JC Penney, Kohls and the likes it becomes harder to compete with the online competition. They might offer same deals but can never offer the same selection. BBs like Walmart have a decent online presence. Target does, with special online deals and 'not in stores' products.

    Look at the BB bookstores. BN is still there but one has to wonder for how long. The smaller local bookstores around here are doing quite well, organizing local events, involve local community.
    Retail as we once knew it is changing. How many of us did their Christmas shopping mostly online last year? I did. And have done for a few years now. The only things I actually buy in stores, comes from smaller local stores around me.

    I think one of the most successful BBs is the whole Marshalls/TJMaxx/Homegoods organization. I see more stores opening up. Whenever I walk in (and yes, I am a frequent visitor) there are always people looking, buying.
     
  7. Bob Carter

    Bob Carter PFG, Picture Framing God

    Hey Ylva May I suggest most 'major' retailers view online as a complimentary offering to traditional. I talk to everyone and was in a Dillard's awhile back. A store mgr type was walking floor doing customer 'meet and greet' and I started chatting. One thing I remembered was him saying the mall store was showing a slight decrease, but online sales from his 'geographical' trade zone added more than instore decrease yielding overall increase in total biz. They were happy

    Today, almost every online site with physical stores offer 'ship to home' or 'store pick up' options saving shipping fees

    Reality is businesses must adapt and most of these 'smarter' retailers are complimenting their brand by offering options making it more convenient for consumer
     
  8. Ylva

    Ylva SPFG, Supreme Picture Framing God

    Bob, book stores, like Borders, did go out of business. They did have online presence but couldn't compete with Amazon. Macy's is closing a lot of stores. Does online ordering make up for that? When was last time you went into a Sears? When was last time when you shopped online at Sears? When was last time you shopped Amazon online.

    So what is it that makes Amazon so much more successful?
     
  9. DVieau2

    DVieau2 SGF, Supreme Grumble Framer

    I would suggest that everything we knew from 2000, 2005 or even 2010 is irrelevant to the market place today.

    Economy and opportunities are better for those who look forward.

    I think all one has to do is watch Sears/KMart and Penny's. Today Sear announced more KMart closings across the country.

    BB's are not all the same size, Sears is big, HL not as big! I would say the biggest guys and the smallest guys are most at risk in today's economy. Being right sized may be the biddest chalenge.

    These guys who manage shopping malls are no longer afraid of a anchor tenant leaving and a line forms from more nimble BB's to get in. In our business Hobby Lobby and Michael's are best poised to grow.

    There may be others in the Framing biz that I don't know about. Who???
    There may be framing distributors thinking about direct to consumers that I don't know about. Who???
    There may be on line art and frame sellers ready that I don't know about. Who???

    What I'm sure of is that small operators like Grumblers are not going to be able to ride this opportunity unless it's tucked away in the corner 100 yards away from HL.

    Doug
     
  10. Bob Carter

    Bob Carter PFG, Picture Framing God

    Hey Ylva

    I do most shopping on line; got something from Amazon yesterday. My opinion on Amazon? As a Prime guy, no shipping next day delivery are primary; one stop shopping second. Third is 'price perception'; don't bother to shop around

    I worked for Sears learning retail for 11 yrs. Then, as now, old non-producing stores closed all the time. Can't speak with authority on Macy's but the stores remaining open are profitable; stores closing not. Might be interesting if you profiled stores to age and 5 mi radius LOL I don't know. Perhaps a review of Annual Report might indicate how online sales are countering closing stores

    Can't say I have ever ordered online from Sears, but order very frequently from Michael's and Staples. Both offer the products I get in store same day pickup or D2C; Michael's offers on product D2C only

    Some models like Bookstore chains and Blockbuster stores just lost out to technology. Lots of reasons fr lots of biz

    Hey Doug Irrelevant might be strong; may I suggest 'adapting to markets' might be just as relevant today as when Mohammed was selling used camels on the Nile 3000 years ago LOL

    Framing distributors? A couple of 'seasoned veterans' like us probably remember locally owned distributors. At one tine in this market there were 4 independent locally owned distibutors and no nationals ; today there are three nationals and no ndies

    Change ain't gonna quit changing
     
  11. Pat Murphey

    Pat Murphey SPFG, Supreme Picture Framing God

    Hey Bob, we have an excellent local distributor, with truck delivery service - Forest Gallery.
     
  12. DVieau2

    DVieau2 SGF, Supreme Grumble Framer

    Yes adapting to the market is always relevant, ongoing and necessary.

    Understanding the market...... I think this applies.
    http://leandroherrero.com/20-years-of-experience-or-1-year-of-experience-repeated-20-times/

    Especially applies in Real Estate.


    Doug
     
  13. ali

    ali True Grumbler

    The more big box craft stores around me the better.

    most people have the mind set to see a michaels or a.c moore or hobby lobby and think they dont want to be next to the competition.

    I on the other hand believe the exact opposite. I want to be right next to all of them because to me they are not competition.

    I get hundreds of customers who go to those big box stores first and when they find out how outrageous their pricing is even with their coupons they shop around and find me. I want as many of those stores around me as possible because they bring me a lot of business.
     
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