Originally posted by clackers It's in a sad state even in The States, as I understand it, TA -
Another Big Camera Store Fails: Why Are So Many Closing?
If Canon are right, how many shops will survive if the number of ILCs sold annually halves from where it is now? That'll mean a corresponding dropoff in lenses and accessories, BTW, just with a lag time.
Well, I would say that the situation is a bit more complex than the linked article suggests. For one thing, the last example, Ritz/Wolf is a suspect one. Few of their stores were very good, and many were paying top dollar per sq ft in malls, yet the stores were poor and staffed with not so knowledgeable people. The Atlanta and California examples are indeed cautionary, but here in the mid Atlantic Baltimore-Washington area we have several quite successful stores---one in the DC area is relatively new and up and coming. These stores are doing relatively well, all things considered.
MAP is definitely a problem, and has been for some time---all dealers will tell you this. The sales tax issue is starting to ease, as noted in comments above. I'm an advocate of taxes, btw. It's how roads, bridges, sewers, public transportation, police and fire departments, and a number of other items associated with civilization are funded. I kinda like those things, personally. The problem I have with the U.S. is how taxes can fluctuate so wildly from state to state, often very unfairly.
But the article only barely touched on the major elephant in the room: hard realities about demographics, with a layer of economics thrown in, and a very unusual sales curve. From the demographics standpoint, camera sales rose along with baby boomers reaching peak earning and with their having families. That's coupled with the go-go '90's economically, and also major improvements in electronics and manufacturing, pushing prices down. All of that created a great sales environment, and it peaked with digital almost asymptotically. If you look at camera sale going back a few decades, we are still higher today than the late '80's/early '90's I believe.
But now this demographic is ageing out, and moving past peak earning and consumption. Toss in some flatlining of middle class income growth, and the worst economic disaster since the great depression, and one which followed the dot com crash and a recession, and it's actually surprising sales are as good as they are. And these macro forces have forced many millenials to put marriage and babies on hold---following a trend in older mothers in the '90's. But they will have families, and so will the generation just behind them, and they are large demographics. I expect we'll see sales rebound a little in several years.
The thing is, the boom in digital was just that----a boom, and booms are not the normal business climate. But everyone is talking about the rolloff of sales as though that boom was normal. There was nothing normal about it, for a variety of reasons.