In the past I've told you that I would Alert you when I saw what I would Consider a major Crisis coming our way Which is true with our today's news now Normally in our weekly news segments we Try to cover Global issues that will Impact you we try to break these up by Sections but there's a consumer retail Apocalypse that's actually happening Right now that's gaining momentum I Think it's significant enough to Center Our news alert around it this week now Your first inclination might be to just Simply dismiss the problems in the Retail industry as just regular Occurrences that have happened in the Retail world over the last hundreds of Downward cycles and while there is some Truth to this this time it is different And I don't say this much on the channel But you need to see the recent retail Failures as a sign of some nasty things That are to come and not just business As usual and I'm going to tell you why In this particular video I think this is To the point where it is a significant Enough sign of a massive downturn in our Economy in this video what I'm going to Do is I'll clue you in on the 25 Closures that are actually happening Right now and the ones that will Probably happen throughout the remainder Of this year then we'll talk about why This is especially problematic at this
Time and what it means to you and if Things don't get better fast I think the Word catastrophic could be too light for This situation Failing businesses here's a lightning Fast look at some notable names closing Locations in a neighborhood near you and After we cover the stores that are Closing we're going to discuss what you Can expect to come next I would Encourage you to stick with me because What we share in a moment will really Enable you to have a complete picture Once you understand just how extensive These closures really are there's a lot That's closing so here we go Kohl's is On the Moody's bankruptcy watch list Macy's is shutting another 50 stores After closing more than 125 locations And laying off 2 000 employees just last Year now when retailers are in free fall Like this and shutting stores and Hundreds there are a few if any examples Of them really ever getting back on Their feet Target is closing several Locations citing a decline in food Traffic an alarming rise in shoplifting And dropping profits 99 cent only stores Are suffering from inflation and high Operational costs the chain has had Negative cash flow for three consecutive Quarters Office Depot will have to shed Over 3 300 locations by the end of this Year JCPenneys are continuing to
Struggle as has been for several years Now and they just announced that they're Going to be closing even more locations This year Joanne the crafting retailer Experienced a boon of cells when the Pandemic found everyone in lockdown with Time on their hands but that's all Changed now with the World opening back Up declining cells have cut profits by 20 percent while this debt has Rose to Over 21 million that's forcing them to Close stores and lay off hundreds of Workers Disney they've been a giant in The entertainment industry for years but They also have an extensive retail store Operation that may not be true for very Much longer they have closed over a Hundred stores just this year and last Political battles boycotts dipping cells High expenditures they all seem to be Taking a toll on their profits and the Company is cutting another 7 000 jobs While the amusement parks may be doing Well retail as is the case with retail Everywhere is struggling mightily and All around the country significant Retailers are abandoning them small Setting and trying desperately to Develop online retail operations or just Simply Calling it Quits Bath and Body Works they're announcing it's going to Be closing another 50 retail locations This year Bed Bath and Beyond they're Closing 400 locations hoping to stay out
Of bankruptcy Banana Republic Gap and Guess they're all struggling to stay Float in the retail apparel industry Gap They just cut 500 corporate positions And even more jobs in Asia and left Russia after Russian invaded Ukraine now These retailers are reeling from a Dramatic loss of cells and are closing Hundreds of stores nationwide apparel Retailers they saw their cells plunge Amid covid-19 lockdowns and many Consumers who are returning to work After stints from working at home They're reluctant to buy whole new Wardrobes the retailer guess their cells Dropped 50 in the first quarter of Justice year alone supply chain and Global distribution have resulted in Decreased output from Asian Nations While stock on hand has swelled from Lack of cells in many of these lease Agreements for these apparel retailers They're coming up for Renewal and it's Not likely that they're going to opt to Renew in the apparel category Foot Locker has to also be included now that Shoe store actually just announced that Earlier this year that it would close 400 shopping mall locations covet Lockdowns of economies worldwide have Really pushed the final naysayers into The online shopping world it's also a Death nil for Brick and Mortar locations Where consumers have yet to return now
One would think this would lead to high Profits for shipping companies like FedEx and UPS but soaring fuel costs Have also eaten those profits up And it's not just retail Goods either Many restaurants and franchises are Failing at alarming rates Believe It or Not Starbucks the beverage Behemoth They've had a difficult time with its Supply chain the cost of ingredients has Also climbed they've been closing Hundreds of locations and the CEO has Just warned that there will be many more Closings in the coming months Burger King is also closing 400 locations by The end of this year BK is not the only Fast food chain that's suffering right Now believe it or not McDonald's has Closed several Corporate Offices is Closing over 100 restaurants and they're Laying off hundreds if not thousands of Employees McDonald's also cites the Pressures of legislation seeking to Raise workers minimum wage and if you Are utterly dependent upon your local Grocery store you might want to develop A new strategy because major Grocers are Also suffering Stop and Shop Kroger Whole Foods Sprouts Walmart and Tops Grocery chains they're all closing Hundreds of locations poor profitability Supply chain problems and double-digit Inflation they've all moved profit and Losses bar too far to the negative now
These massive stores are untenable when Profits dive so dramatically recently Kroger merged with Albertsons in their Struggle to survive that means hundreds Of locations will be closed and Thousands of jobs will be lost as they Seek to eliminate overlapping stores in The same location Sprouts they're Actually closing 11 underperforming Locations and many of these brick and Mortar retailers they're going to go the Way of stores such as Radio Shack and Toys R Us they're going to be forced to Close their doors or beg to be bought Out at rock bottom prices now some of Diminish the significance of these Recent store closures and the ones that We're going to see in the hundreds even Thousands later this year they're going To just simply indicate that we have Always had closures while on the surface That's true beneath the service however We have never seen so many retailers From Grocers to clothing stores to Franchise food establishments tossing in The towel at the same time What's next okay so we ran through all The stores filling and this is the Important part that you need to pay Attention to individually any one of These retailers spelling is not a cause For alarm that's not the case here Though there are too many failing Together last year this year and likely
Until next year to just simply dismiss It and as we had pointed out on this Channel before there's been a worsening Commercial real estate bubble that Experts are claiming will be far worse If it eventually Pops in the 2008 Housing market crash that previously Tanked the economy 2.4 trillion dollars of debt will mature Over the next five years and there's not Any money to meet those debt obligations Now most of these retail closures are Going to remain as vacancies commercial Real estate is very different than Housing loans lowering rents to entice New tenants often requires a vote from Multiple shareholders who would rather Take a loss on their taxes than to eke Out barely a profit so as you hear of a Store closure realize that beyond the Company's loss in the the loss to anyone In the community that relies upon that Location and the loss of jobs of the Community and the increase in Unemployment numbers there's also a Property that will likely not be Reoccupied in the immediate future it's Going to be bundled with other vacant Processes and sold at a loss until the Whole thing just Fells one day and we Covered this coming commercial real Estate collapse in depth in another Video that I'm going to link to in the Comments section below if you'd like to
Really understand how big this problem Has become and here's a kicker with each Of these closures as I just mentioned The ranks of the unemployed they Increase the retail industry is Responsible for 26 percent of employment In the country so as it dries up that Economic engine really begins to sputter Into a seizing Hall and that's not what You want to really want to see when You're plunging deeper into a recession Rising unemployment numbers are also not What retailers want when job security is Low and money is tight from inflation Most people they postpone purchases of Items but big and small and that really Further slows the economy and as you Guess it it propels us further and Deeper into a recession now people hold On to their money and they try to Stretch it out and that means that they Don't go to eat out as much as they Normally would restaurants actually make Up a mere three to four percent of GDP But workers from restaurants and bar Establishments make up nearly 75 percent Of the current unemployment numbers you Can expect this sector to be especially Hard hit as well now this year is Different too because of some of the Extra influencers there's a war in Ukraine that's costing the world Billions of dollars there's a shift to Online retailers and products over
Traditional large inventory big box Stores and even with this shift however Consumers are consuming less Costco Walmart Walmart and Home Depot they've All warned of slowing consumer demand This year the people haven't been so Uncertain about their Collective Economic Futures in recent memory and That's going to get worse in the next Few months as well and as we covered in Our debt ceiling video last week they Things are about to go south in a big Way as consumers hear more and more Wrangling over spinning the debt ceiling Government waste and recklessness They're going to tighten their spinning And slow the economy even further now More businesses will respond by Downsizing their workforces treasury Secretary Janet Yellen she just worn on Sunday of a coming steep economic Downturn saying that the financial and Economic chaos will ensue and she also Said our current projection is that in Early June a day will come when we're Unable to pay our bills unless Congress Raises a debt ceiling and it's something I strongly urge Congress to do Congress And the president however couldn't be Further from a quick resolution on this They're currently at an impasse raising The prospect of the fall and legislative Standoffs they're common in a nation With deep partisan divides but the
Republicans hold a thin majority in the House of Representatives while the Democrats led by Biden control the Senate with a scant to votes the stakes Of the current debt ceiling standoff are Much higher than previous debates about Budgeting which have resulted in partial Federal government shutdowns three times In the past decade now even if a Shutdown is averted just the debate Alone can lead to a further slashing of The United States top-tier credit rating In a significant stock sell-off why you Must prepare now So these next few months especially if The arguing of the debt ceiling drags on And on will tell really how dark things Are going to become again any one of These alone and I wouldn't really have Costs for concern but let's list them Out now that we know they're all Compounding upon each other there's Multiple store closures commercial real Estate vacancies commercial real estate Bubble unemployment numbers increasing There's a global recession there's low Consumer confidence there's another debt Ceiling debate leading to a possible Shutdown there's continued conflicts in Europe and the South China Sea and their Supply chain challenges and each one of These is a storm cloud gathering stream Through the rest of this year and Combining with other storm clouds and
Whether you live in downtown Manhattan Or Manhattan Kansas your world is about To change dramatically from what might One day be viewed as the Pinnacle these Retail closures are really a harbinger Of far worse things to come and we've Never really seen them going out of Business at such a rapid rate and I Would encourage you don't just shrug off Your local retailer closing their store In your town they've had there for the Last decades or more see it for what I'm Telling you it is it's a signal of a Massive economic downturn in just one Signal at that and as I bulleted out a Second ago there are many indicators That we are seeing that really indicate That we're just at the beginning of this Before it's over the dollar It could fail in ways that it could be Pretty damaging to this economy Inflation could reach levels not really Witness in recent history and that's Going to be as you can imagine a bad Situation and look when I do these Videos my goal is not to cause panic but We have to be honest here there really Are only a few positive signs with the Economy at the moment the weakness of The retail industry from big box stores To apparel to grocery stores is alarming At best it's a sign at worst that we are On the edge of an economic Cliff about To plunge into what I would consider
Free Fall now the economy is profoundly Changing as it nears a cliff and I would Encourage you to prepare as if the world You have known will transform into Something that existed before you were Born because the age of the major Retailer just like the age of malls is Receding on the horizon so two should You reduce your dependence on these Businesses for your daily needs I always Encourage people to try as they can in To shop locally I think that's going to Become more and more important as time Goes by And look let me just recap this here I Know there's a lot happening and I know As we roll these new segments out every Week my goal is not to incite fear I'm Not trying to cause Panic Um but the signs and the indicators are Adding up such that I think it's Important that we discuss and so you at Least are aware and understand what's Coming and it gives you an opportunity To prepare we're going to be doing a Video even this week on discussing uh What you can do if you suspect your bank May be in a state of failure the Practical steps that you can take we Just recently discussed what you can do If you suspect or fear rather that the Dollar May Fail soon there's a lot of These things that are coming together But through it all my encouragement to
You is this you're not a victim you can Prepare yes things are challenging and Yes there are some things that are Clearly coming together to converge at Once that by themselves could be a Problem but taking the magnitude of the Situation that these are again colliding It begs and whether it requires us to Pay attention and to take action but Again as Preppers this is what we do we Watch what's coming on the horizon and We prepare that's my advice for you as Well at this moment if you have any Thoughts any feedback feel free to post That below normally we do a giveaway in These videos I apologize we didn't have One ready for this week but we'll do Another News segment this week and we'll Post that giveaway in that time so as Always stay safe out there
