Millennials may get a hard time for a certain number of topics, one thing they are trending to is not racking up debt via credit cards.
Buddy emailed me a business article from USA Today (10 retailers take two-thirds of your money). Subject showed that only a few retailers make up a major portion of the market.
Something that caught my eye was that of Walmart and where their revenue comes from. Walmart is a smart company and are more global than what people think. How global? Check this stat out:
It’s true that Wal-Mart has a much larger international presence than other retail giants – as roughly 41% of revenue comes from outside the U.S.
During the holidays billions of dollars in gift cards are received. Amazingly these cards start slipping through the cracks to never be used. How much is still lingering around:
“People are letting cash slip away that they could be using,” says John Kiernan, a senior analyst with CardHub. Kiernan, citing CardHub numbers, estimates that some $44 billion in unredeemed gift-card value has been accumulating since 2008.
Unused gift cards aren’t just free money for retailers either:
For retailers, however, gift-card sales don’t count as revenue until cards are used, meaning that retailers are holding $44 billion in liabilities against these unused cards.
NYPost also provides more information on how consumers can cash in the cards as well.
Really fascinating piece of the economy that is bigger than what one thinks.
Crime against retailers is a high cost that gets absorbed either through higher prices for the consumer or loss of profit for the retailer. Not much is talked about this cost and some recent numbers shed some light on the issue. The National Retail Federation did a study in the spring of 2014 and here is what they found:
A decade has passed since NRF first surveyed its community of loss prevention and security executives about the impact organized retail crime has on their company, and with the release of the 2014 survey, it’s evident that the $30 billion a year problem still threatens retailers of all sizes throughout the country. According to the National Retail Federation’s 10th annual Organized Retail Crime Survey, which polled 76 senior retail loss prevention executives, eight in 10 (88.2%) retailers report that they have been a victim of ORC in the past year, down slightly from 93.5 percent last year.
New data also rolled in on states that helped retailers prosecute criminals:
According to the survey, three in 10 (30.6%) of those polled said they have noticed a reduction in ORC activity in states where laws are present. Additionally, of those retailers who have a presence in states with existing ORC laws, more than half (52.1%) noticed a positive impact on their ability to prosecute ORC offenders more effectively; nine in 10 (88.5%) said they have noticed an increase in support from law enforcement agencies when actively investigating organized retail crime cases. Specifically, 51.9 percent said they’ve noticed an increase in support from local/county law enforcement, 26.9 percent said state law enforcement and 9.6 percent said federal law enforcement. In states without ORC laws and where retailers have a presence, six in 10 (63.5%) say they haven’t noticed any changes in support from law enforcement.
You can read the rest of the report here.