Back in 1981, when MTV first went live, their first video was by a band called The Buggles, appropriately titled “Video Killed The Radio Star”…
I remember watching it – and I knew then that things would be way different from that point on.
And they are…
MTV doesn’t even play music anymore, The Buggles are happily enjoying retirement and radio is hanging on by a thread – but I’m not here to talk about the music industry – though, there is a kind of connection with today’s article.
You see, if The Buggles were to write their song today, it wouldn’t be about videos and radios. Now, the new title would be something closer to…
“The Internet Killed The Big Retail Star.”
The internet – the most life altering invention since the automobile – has done a lot to impact our world.
There isn’t an industry out there that hasn’t been effected by the world wide web…
Music was among the first casualties as file sharing sites like Napster and Limewire more or less boxed the music sellers out – allowing people to get the music they loved for free…
The next market to feel the crunch of the internet’s influence was the print industry. Hard copy newspapers, books and even magazines are going the Dodo. Digital media is the preference of the younger generations and publishing houses have felt their absence.
Now… we can add retail to that list.
People are just not going to stores as much as they once did…
Why? Because they can sit at home an literally order the same goods they could buy at any mall over the world wide web – securely, safely and all without having to deal with finding a parking space.
Gone are the days of the teeny-boppers rolling up on multi-level shopping complexes, looking to find a new pair of jeans, a cassette tape, a hot pretzel, and God willing, the attention of the opposite sex.
Social media takes care of that for them…
Amazon (AMZN) can sell them almost anything and could have some of these items delivered THAT day – if not the day after.
So why go to the mall when you can go to the beach with your friends and shop from their chairs with their toes in the sand?
I bring this up because it seems like one of the old guards is falling…
Mall staple and retail giant, Sears (SHLD), may soon find itself out to pasture.
The already beleaguered retailer recently reported that sales in the remaining stores they have between their two brands (Sears and Kmart) have dropped a WHOPPING 11.9% since the beginning of the year.
That’s HUGE!
In 2000, Sears annual sales were at $41 billion –with the proper growth, you would think annual sales would now be at least $200-$300 billion. However, last year, Sears recorded annual sales of just $22 billion.
Meaning that over the past 16 years, sales have dropped over 53%! Talk about a punch to the gut. And now they’re already staring at an almost 12% loss?
It may be safe to say that Sears may already be dead in the water.
And while their stock hasn’t exactly bottomed out…
It may not be long – as their chart looks more like the downward trajectory of a lame duck than a soaring eagle.
Which is why when I look to invest in ANYTHING in retail or recommend a pick to my GorillaTrades subscribers – that company had better have a strong online presence or their going to have a hard time making it in this new, digital age.
Companies like Amazon, eBay (EBAY), Apple (AAPL) and Google (GOOG) get it…and that is why each is currently in the GorillaTrades portfolio.
Even big box retailers Target (TGT) and Wal-mart (WMT) get it.
Sears didn’t get it – and it may be the proverbial nail in their quickly closing coffin.
I’m working hard on my next cache of stock picks and once they meet all the conditions for my GorillaTrades system, I’ll push them out to my subscribers without delay!
So please… consider becoming a subscriber today!
If anything, this article should prove that you need to adapt to survive…
And finding success in the markets is no different – so please, consider joining GorillaTrades today!
“In the animal kingdom, one of the keys to survival is to outwit your enemies. And when you’re surrounded by carnivores, one of the best strategies is to fade into the background and disappear.” – Neil deGrasse Tyson