Extreme Rent Increases Are Killing US Businesses

[Harpy Eagle]

Shedding employees doesnt solve the problem of sales reduction, caused by extreme inflation. In fact, getting rid of employees will make the problem worse > even more reduction of sales.

extreme inflation

 

[protectionist]

extreme inflation

That's what I said >> EXTREME INFLATION. 100-200% in rental housing & gas prices.100% in food prices.

 

[protectionist]

Business owners: you need to be more vocal about this issue. Every dollar that landlords up their rent, is another dollar your customers dont have to give to you.

Problem is, we're talking about $12,000/year for many of those customers. $5,000 in my case

 

[saveliberty]

Unbelievable apartment rent increases of hundreds of $$$ per month, are tearing US businesses to shreds. In my own case, I was paying $600/month 3 years ago Te rent went waaay up and I movd out. That apartment is now $1600/mo for renovated, $1200 unrenovated.

So I moved out, and I now am in a better place, but I'm paying $1,014/month. So I now have $414 LESS to spend every month, than in 2021. $4,968 less per year. There goes the nice new violin and mandolin I was going to buy. Same thing for hundreds of other musical instrument buyers in my area. So guess what > our main musical instrument store (Sam Ash) closed up & went out of business, nationwide. They had been in business for exactly 100 years.

Guess who else is closing down stores. > Walgreens. No, they don't sell musical instruments, but what they do sell cost money too, and a significant part of their customer base now has hundreds of $$$ LESS per month, to buy things with.

Walgreens could shutter over 2K stores as sales plunge amid stubborn inflation

Walgreens announced it will be cutting its profit forecast for the fiscal 2024 year and closing more stores across the US in its latest attempt to deal with a “difficult operating environment…

nypost.com

Sam Ash Closing All Stores After 100 Years In Business – Synthtopia

The government allowing renters to not pay rent during Covid made all this possible. Those landlords left are getting their money back for sure. Good for them.

 

[protectionist]

The government allowing renters to not pay rent during Covid made all this possible. Those landlords left are getting their money back for sure. Good for them.

Good for them. Bad for all other businesses, many gone out of business.

 

[initforme]

That's what I said >> EXTREME INFLATION. 100-200% in rental housing & gas prices.100% in food prices.

Oh well. That's the way it goes.

 

[saveliberty]

Good for them. Bad for all other businesses, many gone out of business.

Capitalism weeds out the weak.

 

[protectionist]

Oh well. That's the way it goes.

No, that's NOT the way it goes if we are a responsible society that corrects wrongs. Doing we just say "that's the way it goes " when people swindle ? No, we pass laws against that, and correct it.

 

[protectionist]

Capitalism weeds out the weak.

I wouldnt exactly call WalMart. Walgreens, and Sam Ash (in business for 100 years) "weak". These are all business that have been strong for a long time.

We are dealing with an unprecedented occurance where one type of business is severely damaging all other types of businesses. That is something apart from just "capitalism".

 

[protectionist]

Buisness owners: you need to be more vocal about this issue.Every dollar that landlords up their rent, is another dollar your customers dont have to give to you.

Problem is we're talking about $12,000/year for many of those customers.
$5,000 in my case.

 

[protectionist]

That's what I said >> EXTREME INFLATION. 100-200% in rental housing & gas prices.100% in food prices.

Note: My own rent went from $600/mo in 2021, to $1600/mo in 2023 (167% increase). I moved, and now pay $1,014/mo, but that still is a 69% increase, I never had an increase before of more than $25/year (4%)
Nothing "FAKE" about this.

 

[Ringo]

Socialism: problems in education, health care, housing are solved, social lifts work, but there is a shortage of consumer goods.
Capitalism: plenty of consumer goods, but problems in education, health care, inaccessible housing, social lifts do not work.
Only a moron chooses capitalism.

 

[protectionist]

Socialism: problems in education, health care, housing are solved, social lifts work, but there is a shortage of consumer goods.
Capitalism: plenty of consumer goods, but problems in education, health care, inaccessible housing, social lifts do not work.
Only a moron chooses capitalism.

America is a combination of capitalism and socialism. In some particular circumstances there is a need for mpre capitalism. In other circumstances, more socialism is needed.

We just cant be having 100 year old businesses that everybody and their parents and grandparents have loved, going out of business (ex. Sam Ash Music). Extreme rent increases are destroying good, previously healthy, worthwhile US capitalism.

 

[Harpy Eagle]

America is a combination of capitalism and socialism. In some particular circumstances there is a need for mpre capitalism. In other circumstances, more socialism is needed.

We just cant be having 100 year old businesses that everybody and their parents and grandparents have loved, going out of business (ex. Sam Ash Music). Extreme rent increases are destroying good, previously healthy, worthwhile US capitalism.

Why they went under...

In court documents, Sam Ash cited an over reliance on in-store retail traffic, too many locations, the elimination of store visits during the height of the pandemic and declining revenue as contributing factors to the company’s unsustainable financial situation

Plus, they have been bought out by a larger company that wants to compete with Sweetwater.

Sam Ash assets acquired for $15.2M

Mexican company Gonher is purchasing “substantially all” of its assets, following the music retailer's Chapter 11 bankruptcy in May.

www.retaildive.com

 

[protectionist]

Why they went under...

In court documents, Sam Ash cited an over reliance on in-store retail traffic, too many locations, the elimination of store visits during the height of the pandemic and declining revenue as contributing factors to the company’s unsustainable financial situation

Plus, they have been bought out by a larger company that wants to compete with Sweetwater.

Sam Ash assets acquired for $15.2M

Mexican company Gonher is purchasing “substantially all” of its assets, following the music retailer's Chapter 11 bankruptcy in May.

www.retaildive.com

And their "revenue" ? It doesnt come from taxes. It comes from sale$. And declining sales is what I'm talking about. I worked for Sam Ash recently as a guitar teacher. I've been in the store day in, day out. I've met the customers (taking lessons & buying instruments) You hear the same thing all the time > "My rent just went up $400" (mine too).

Online sales is hurting too. Guitars, violins, etc dont get any cheaper just because they're online, and not many musicians are enthusiastic about buying instruments they can't touch. and feel, and hear.

 

[Captain Caveman]

 

[Ringo]

View attachment 975653

Must be very stupid mouse.

 

[Vastator]

I wouldnt exactly call WalMart. Walgreens, and Sam Ash (in business for 100 years) "weak". These are all business that have been strong for a long time.

We are dealing with an unprecedented occurance where one type of business is severely damaging all other types of businesses. That is something apart from just "capitalism".

No. Just no. Rent prices arent damaging businesses. Everything is more expensive. That includes rent. Using your flawed logic one could claim that the collective business market is damaging landlord profits, under the assumption that I could charge more, if retail prices were lower.

 

[Captain Caveman]

Why they went under...

In court documents, Sam Ash cited an over reliance on in-store retail traffic, too many locations, the elimination of store visits during the height of the pandemic and declining revenue as contributing factors to the company’s unsustainable financial situation

Plus, they have been bought out by a larger company that wants to compete with Sweetwater.

Sam Ash assets acquired for $15.2M

Mexican company Gonher is purchasing “substantially all” of its assets, following the music retailer's Chapter 11 bankruptcy in May.

www.retaildive.com

Stores have a cost base that you just suddenly can't get out of, tied into lease/rent agreements etc.. All the lockdowns did was cause world wide economic chaos for the sake of not killing off that million or two more folk. Stores are undercut by people operating an online business out of their basement or garage, straight away, no shop costs.

Shopping centres/malls can often be owned by pension companies needing rental income to pay pensions. Shop online to save money, not use the store, store closes, everyone whining why pensions are crap.

The simple matter is which I've said all along, there shouldn't have been COVID lockdowns. Now everyone is suffering because of the tiny few. But societies work backwards these days.

 

[Captain Caveman]

Socialism: problems in education, health care, housing are solved, social lifts work, but there is a shortage of consumer goods.
Capitalism: plenty of consumer goods, but problems in education, health care, inaccessible housing, social lifts do not work.
Only a moron chooses capitalism.

Name a socialist country that you wish to move to?

Socialist education is actually called Indoctrination.

Capitalism creates inequality misery, some do well, some don't because you reap what you sow. Socialism creates misery equality, we all have to suffer, you can't reap what you sow because we'll be all be living out of the same begging cap.

Just because socialism sounds good on paper, then you let everyone know which socialist country you want to move to. Suffice to say, I'm sticking to where I was born, the UK.

Trying to drag a capitalist country down to socialism but not wanting to move to a socialist country is like being a Muslim trying to drag a country down with Islam but won't move to a Muslim nation. They know those countries are shit, think their socialist/Islamic ideas are amazing, and wants to make the country they live in shit too. That's a special retardism.