Applying retail trends from Manhattan to the rest of the country is sketchy. I drove through a SW suburb of Portland two weeks ago and notice a closed K-mart and a coffee stand going up where there had been a gas station, a 100% location. The only businesses that seem to be surviving are car dealerships and restaurants. I was talking to a car salesmen this weekend and he said that Buffett bought a large midwest dearlship and is planning to 'revolutionize' the car buying experience. We'll see. When the internet finds a way to send hot coffee, watch out.
[Edit: Speak of the devil. WSJ 4/8/18:
"These developments have helped fuel consolidation of the 16,800 U.S. dealerships into the hands of fewer owners. The top 50 dealer groups are poised to book more than $175 billion in revenue this year, compared to $144 billion when Mr.
Buffett’s Berkshire Hathaway Inc. entered the sector four years ago, according to industry publication Automotive News.
Erin Kerrigan, founder of the Kerrigan advisory, said about 200 dealerships changed hands in 2017, near an all-time high with a similar level of transactions to take place this year. Sellers are scrambling to cash in while
commercial real estate prices are high, or partner with a deep-pocketed investor, she said."
Land that dealers sit on is rising in value, electric cars need less maintenance.
