More Retail stores are closing!
Family Dollar and Dollar Tree are to close nearly a 1,000 stores and that will equal out to almost 5,000 people who will be laid off and without a job. I don’t say that lightly, you have at the minium about 3 to 5 people working either full time or part time at the store and that is just a guess but I also know this will not just affect the workers of the stores but transportation of goods to the stores and warehouse people. That’s why I suspect it will be 5,000 people will most likely be affected if not more people due to not having these stores be open. I don’t know the exact number but that is the economic troubles in the US right now and that isn’t the only thing.
Joan’s Fabric Files for Chapter 11
Well it’s official Joan’s Fabric just files for Chapter 11 protection, but that isn’t all. This is all do people not spending money on luxury items and other things that isn’t essential to living such as rent, food, gas, and power for the home. It however doesn’t mean that Joan’s will close up shop but I suspect they will do some people reduction and decide what they are going to change in the stores. They will become a private owned store again and that will likely drop the stocks of the Joan’s and make it even harder for them to continue their business. We will have to wait and see but this is something that will cause more economic turmoil in the US.
Key Indicators for a Recession
There are few indicators that I would like to point out that show we might be going into a recession even more.
- Lay offs — The first one is of course people getting laid off more than the jobs are being created. If people aren’t working that just brings us down a spiral of people not being able to pay for the extra stuff in their lives. That will also affect other industries such as retail and gasoline/OIL.
- Retail Stores — As you can see there are some major stores having issues being open and this is another key indicator that we are in a recession due to the amount of news around stores closing or that they are filing for bankruptcy.
- Oil / Gasoline — Since people aren’t driving more or traveling more the Gas Prices and oil prices aren’t going up in fact mostly going down. If you really think about it, it was much higher last year compared to this year and it seems to be either leveling off or might just be going down even more.
- Unemployment Rate — This is the last key factor that I’ve been watching but it suggest that unemployment will start to go up in the coming months. I suspect it will get above 6 or 7% at the minium and that isn’t going to look good for Biden Administration.
As you can see these are just a few indicators that we will not have a light landing or even a landing at all but a hard reset is probably coming in the coming months and that will cause a lot of turmoil in peoples lives. I really don’t want to think about what will come our way but this isn’t looking good either way. We will see other retailers have issues in the coming months I am almost sure of it, but who I don’t know we could keep watch on the stocks of certain retailers but that will only show us which stores are having problems or how confident the share holders are at keeping those businesses going. I suspect this will bring the stock prices of most retailers down some, don’t know how much but this is just a guess.
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