Death of Sears traced to your tight budget

Wednesday, November 21, 2018
 | 
Chris Woodward (OneNewsNow.com)

Sears ad and buildingMillions of Americans are witnessing the disappearance of Sears stores, and an analyst says the demise of Sears is a story about the middle class.

"To begin with, we can see that the middle class is disappearing just by our shopping habits," says Jameson Taylor of the Mississippi Center for Public Policy (MCPP). "Consumer spending accounts for a significant portion of the U.S. economy, and we can see that spending in how people shop."

Increasingly, he says, there is a divide between low-income shoppers who might drop by a dollar store and high-income shoppers who can easily drop several dollars at a high-end retail store. 

Taylor

"This has been happening since the 1970s, but in particular in recent years we're seeing the top five percent of earners in the United States accounting for almost 40 percent of consumer spending," he says. "These people are not shopping at Sears."

The former king of catalog sales, which became the king of retail stores for 60 years, filed for Chapter 11 bankruptcy protection in October. 

Taylor believes the same could be said for J.C. Penney, which he says is on the "brink" of following the demise of Sears because of middle class spending.

"The middle class is being squeezed out by high health care costs, in particular high health care costs, also due to rising educational costs," Taylor advises. "But we're going to see this with retailers like J.C. Penney that have traditionally focused on the middle class --- they're getting squeezed out by dollar stores and Walmart on one end and by more high-profile destinations on the other end."

Meanwhile, Taylor says tax breaks from states and cities offered to large brick and mortar retailers as well as Amazon are squeezing out small businesses.

"That makes it really hard," he says, "to start and sustain a small business these days."


Consider Supporting Us?

The staff at Onenewsnow.com strives daily to bring you news from a biblical perspective. If you benefit from this platform and want others to know about it please consider a generous gift today.

MAKE A DONATION

Comments

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWSBRIEF

SUBSCRIBE

VOTE IN OUR POLL

What is the most important issue raised during the congressional hearing with Google's CEO?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

US appeals court blocks Trump birth control coverage rules
Trump argues he 'never directed' his lawyer to break law
Boy Scouts exploring "all options" to address fiscal woes
Senate rebukes Saudi Arabia over Khashoggi, Yemen war
In plea deal, Russian woman admits to being a secret agent
Senate passes overhaul of sexual harassment claim process

LATEST FROM THE WEB

Opinion: Cohen didn't violate campaign finance laws - and neither did Trump
Trump cancels White House Christmas party for the press
Risk of heart attack greatest at 10 p.m. on Christmas Eve
Glorious hypocrisy: 'Baby, It's Cold Outside' banned - so why not misogynistic rap?
Under socialism, you can't even afford to die

CARTOON OF THE DAY

Cartoon of the Day

REASON & COMPANY

NEXT STORY
Chick-fil-A blesses WWII vet with free food … for life

Chick-fil-A restauranteA Chick-fil-A in Avon, Indiana, is honoring its favorite customer – a World War II veteran – with free food for life as a token of appreciation for his service to the country and for his special friendship with employees.