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Originally Posted by Mr.HappySilp
I still don't see how the gov can say we are in a healthy economy while most economist is saying the exact opposite. I see major brands closing its door (Toys R Us, Sears, The Gap, Townshoes etc etc). With GM closing its plant, and the fact we are losing in terms of trading to the US and China and energy sector slowing down (low gas price and LNG not being build) what's there to support our economy?
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I feel like a lot of these are more shifts in consumer preference and companies failing to adapt. I wouldn't say that the failure of these companies indicates economic performance.
Toys R Us has had junk bond status since Jan 2005, Sears sales have remained in the ~50B range while Walmart was doing ~100B since the late 1990s, and only the Canadian branch of Town Shoes is claiming significant losses due to competition.
What you're seeing here is mid tier brands being squeezed out of the market by value (i.e. Walmart/Target/Winners), extreme-value (i.e. Dollarama), and in fashion - fast fashion (Zara), and luxury brands.
Keep in mind, Gap's bankruptcy is Chapter 11, so they're remaining in operation but looking to restructure.