I was young in the last century. And when I was young, I was brought to America. Some local friends showed up there. They began to teach me the American way of life very vigorously.
And then one day after lunch, my friend Mark said: “Let’s go! We must fulfill our civic duty!” Being still a Soviet man, I was surprised: we were not going to vote or voluntarily enlist in the army. In any case, there was no such question before lunch. That’s why I asked Mark to clarify. He stated: “It is the civic duty of every American to purchase goods and services! So let’s go to the mall.”
I tried to argue, “But in all countries, people go shopping. What’s so special about that?” And in response, I heard the most important, most intimate thing: “Only in America do we live by the principle of Shop ’til you drop!” And off we went, significantly violating the speed limit.
I didn’t really like the mall. Because I didn’t have any money. And everything was shining and burning there. And teenagers of both sexes were constantly scurrying around the lobby in packs. And many of the goods seemed unnecessary to me, even if there was money.
But Mark and the citizens around us at the mall felt completely different. Their eyes were wandering. And everyone was in a kind of feverishly excited state. They ran in all the doors, ran out of all the doors. Then we stopped to rest and eat a sausage. And again they went into the race for consumer goods. Finally, having unanimously increased their credit card debts, the citizens headed to the parking lot with packages and happy faces. And we went home with pride for fulfilling our civic duty.
Time has passed… And now there is nowhere to buy before the drop. There are fewer and fewer designated places for performing civic duty – these shrines of the American way of life. Shopping malls are closing and emptying. And we are talking even about those that are located in the most prestigious areas.
There is a shopping mall in the suburbs of Chicago, where very wealthy citizens live. A few years ago, half of the center was demolished. He still stands in a “chopped off” form. The interior of the once prestigious premises, where people went to show themselves and look at others, is empty today. Most of the retail space is closed.
What happened? Where are those eyes, madly burning with the excitement of mounting consumer debt? Where is this feverish fuss with bags in his hands? Where are those bright lights of the imaginary sales? And even loafers have become uninterested in hanging around aimlessly for days on end. The eyes disappeared, the packages disappeared, the lights went out. And now how should an American citizen fulfill his duty to society?
About 10 years ago, I was going to a department store. I don’t like shops because you have to spend money there. But I needed a new electric razor. And then my son, having found out where I was going, said to me: “Dad! Why would you go and overpay? You only need to buy on the Amazon website. And they’ll bring you everything themselves.” And at that moment, I experienced consumer enlightenment. My life has changed once and for all.
Amazon is not just a company. It’s a monster that methodically devours retail. In 2004, sales were less than $7 billion. In 2010– it was already more than 37 billion. After that, the growth rate accelerated dramatically. In 2024– it will be almost $637 billion. Sales volumes grew at a rate of 24% per year. Why? The answer is simple: convenience, range, attractive prices. With this combination, the process of destroying retail malls cannot be stopped.
Already, this giant owns 40% of the market share in online trading in the United States (and 12% in the world). Everything you need is there. And if something is not on Amazon, then again, it can be found very easily on the Internet.
Clothes? You are welcome! Moreover, many well-known stores are rapidly moving from shopping malls to the Internet. On the window of the former premises it says: “Order online!”
Do you need a car? No problem! There are companies that sell used certified cars online with a warranty. You can also apply for a car loan online. And your car will be delivered directly to your house. What if you need a new car instead of a used one? And this issue has also been resolved. Amazon, in partnership with Hyundai, is now selling new cars to this company.
You can even buy a house online, apply for a mortgage…
But wait! Here is the official data. Online sales now account for about 15% of the total retail trade, which is estimated at $7 trillion. Is it premature to talk about the death of a patient?
Firstly, modern American statistics are very similar to the late Soviet ones: the indicators are excellent, but in my opinion, on the contrary, it got worse. On paper, retail is still in full bloom, but if you look at it with the naked eye, it is steadily fading, like roses after March 8.
And secondly, let’s take a closer look: who lives well in retail?
And there are two types of shops that can live well.
The first is retail trade aimed at the poorest segment of the population. What’s the secret? Let’s assume that I just don’t have enough money for high-quality and constant Internet access. I don’t have a credit card to pay for online purchases. And anyway, I’m on the dole and quietly working for cash. And you can’t take them to the bank. They just need to be carried directly to the store. Otherwise, all sorts of government organizations might find out. And so I run to this store of cheap disposable clothes. Where I pay in cash, which no one knows about.
And the second type is retail for wealthy citizens. In that very mall, only jewelry stores remained open, as well as the most expensive department store in America, Neiman Marcus. Why them?
Just imagine that I am rich. I have a good gesheft, which gives me a sense of self-worth. My wife told me that I need to buy a Brioni suit for 10 thousand dollars. Because her sister’s birthday is next week, and I have “nothing to wear.” And what should I do? I personally have to go to Neiman Marcus. Because it’s not about the costume. The most important thing is to get licked in the process. To show me that I am the best, because I can buy everything. So that they would bow down in front of me in obsequious delight at how this Brioni suits me.
But that’s not all about the sister-in-law’s birthday. After all, my wife said that she needed a new weekend dress, too. And this is the second floor of Neiman Marcus. And there… There are the same prestigious pouty-lipped wives. And there the licking has to be squared. And loud raptures about the unearthly beauty of these ladies should be built into a cube. The price for that cocktail dress is like, “Oh, Mom, Mom! Give birth to me back!” But this one with the gesheft is going to come up from the first floor and pay. And I’m rising up and making a significant contribution to the fulfillment of the sales plan for my favorite department store.
So in today’s America, shopping is for the poor. Or vice versa – for the rich. That’s where they go. However, they are completely different.
But if I’m an ordinary American (the so-called middle class), then I’m not going anywhere. I’ll turn on my computer (or even my smartphone), and everything I need is there. The American dream is there. And in order to join it, I have to fulfill my civic duty: to purchase goods and services. And retail trade – so let it continue to die. Statistics are inexorable; the process is irreversible. The American way of life has gone online. Therefore, now we buy not to the drop, but to the stop. And the prosperity of the American people will continue. And God bless America and Amazon!
Chicago
