Published by the Capital City Hues - November 25, 2024
The number of closings in 2024 will exceed the numbers from last year. That number was about 14,000. It’s not just the small, local businesses that are taking the hits, it’s also national chains like Red Lobster, Family Dollar, Best Buy and Big Lots.
The reaction by consumers is predictable. With rising costs of food, rent and gas, the first household cuts will be going out to eat, recreation, and yes even medical prescriptions. However, this also means that families will go into debt trying to meet these critical needs.
There are other factors that have added to the downfall of stores, especially the smaller, independent ones —all casualties of the so-called free market. These include high rents thanks to the greedy real estate moguls. When small businesses experience higher prices in the supply chain, gas, and other essentials, they attempt to stabilize their bottom line by passing the costs of doing business onto the consumers.
Another factor is the increasing dominance of Walmart and Amazon. Drug stores such as Walgreens, Rite Aid and CVS are struggling to compete with the low prices of the market giants. The same goes for businesses like Office Depot which acquired Office Max in 2013, creating the largest office supplies chain in the U.S. It seemed like a great idea at the time, but the economic conditions changed.
We cannot discount the impact of poor management decisions. Red Lobster continued “endless shrimp” promo in the face of rising seafood costs. And what about the proliferation of Walgreens and CVS stores? Over the last few years, I’ve seen Walgreen and CVS literally build stores in the same city block.
While businesses are filing bankruptcy, re-organizing, streamlining their operations, and diversifying their goods and services, working families are left with trying to make decisions in a financial whirlwind. We already know that we will carry the burden of the economy on our bending backs. We always do.
Given the cyclical nature of the capitalist economy, consumers should know where this is going and can brace for impact. The thousands of closing stores means tens of thousands of workers will be on the street looking for jobs which are not there. Black families, already at the bottom rung of the ladder of economic mobility, will be kicked back down into the river of despair.
There is expansion in one sector of the economy. Our bodies and our minds will need help as undue stress manifests itself in our organs and as our mental health is wrecked. The medical industrial complex will be waiting for us with open arms and medical invoices.
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