Crisis of the retail sector
Welcome brothers to a new video of my channel brothersindividends, I invite you to subscribe to my channel so you will get new videos as soon as I finish them!
In today's video we'll talk about the malls, the enormous american shopping centers that are in the middle of a considerable crisis, a crisis that might soon reach the rest of the world.
That being said, the term crisis here is relative, as the US still dedicates 5 times as much surface to shopping centers per citizen compared to Europe or Japan.
Still, it is undeniable that the sector is undergoing profound change: while online shopping is growing by 15% yearly, sales in malls are barely achieving a growth of 2%.
Retail chains like Sears have lost in the last few years 10 billion dollars.
Macy's will close 68 shops this year, and they might not be the last.
But just as there are losers, there are also winners in this shopping war.
On one hand, Amazon, whose ascendancy might only be just starting.
And Walmart, whose cheap prices policy keeps it competitive with online shopping, at least for now.
So, brothers, as always, everyone is responsible for their own money and should reach their own conclusions, but as for me, I'm wary of the retail sector right now.
It is an excellent business and I'm interested in having a percentage of my portfolio invested in it, but I think there will be great winners and also great losers in the long term in this sector, so choosing wisely in which company to invest in will be key.
Whatever you do, best of luck in your investments!