 the iconic may season downtown san francisco is now closing down is it more because of crime or is it because of e-commerce or both yeah well welcome to today's episode of two things can be true at the exact same time even though the internet is up in arms about it make sure you like subscribe turn on your notifications and there's multiple reasons for everything we always stress on this channel that a lot of things are like a reason pizza that reason pizza has different pie slices in it so are we just arguing over pie slices of course the crime plays a part of course the negative retail environment like you ever been in a macy's recently why wouldn't amazon be better categorically better than a macy's and a macy's got no reviews it just like it's overpriced amazon got better pricing it's easier to return stuff but uh at the end of the day it's an election year and a lot of people are accusing both sides of having agendas wow well let's talk about it so what's the agenda so let me guess let me guess a lot of people who are saying it's due to crime it's due to crime they're kind of like anti-democrat because a lot of people blame the rise in crime on the democrats right now what about the agenda of people being like no there's another element though there's another element what is it the more right side is also saying that sf has a very anti-capitalism environment so they have a war on private businesses in general not just like just not just loose on crime but war on private business like capitalism in general i'll need more information on that perspective right of course the other side is saying well all the macy's are closing around the country anyway right which is because it's a wack business yeah they're just not that busy i mean i don't want to say they're a wack business i think it's old school i think that at the end of the day you know i did walk into a macy's in new york recently the one in 34th street it's huge it is the biggest macy's in new york city where they start the macy's day parade type thing and uh yeah i don't know if it's just it's not carrying the goods that people want and a lot of people are moving online and when you go online you can find that very specific item that you're looking for there's a lot of e-commerce brands that are not in stores that you just the whole system of getting your brand into a macy's is a very long and dramatic system too so i think a lot of brands a lot of your favorite brands are not even at macy's right um a lot of people are saying that all the middle class spots anything that caters to the middle tier will vanish but luxury will stick around because guess what didn't close down in san francisco's union square andrew the luxury stores tiffany's blooming dales or whatever you know what i'm saying so it's like basically it's like because in the luxury experience so much of it is going in there and getting the white glove treatment whereas middle class stuff it's very easily replaceable by the internet yeah i think that once people realize they could buy a lot of athleisure and buy your t-shirts online for cheaper and it comes straight to your door a lot of middle class people are doing that to be honest so it's not really any one's single fault i mean i think it's multifactorial david if i asked you hey david how'd you arrive at the number 20 you know what you'd have to ask me what do you mean what's the equation i got it there's multiple factors in this equation that helped me arrive to 20 five you got to this result but you don't know how you got here because there's multiple reasons right right right all happening at the same time of course like liquidities down so it's harder for these big businesses to access big loans to like float them to get them through but they're probably just extrapolating the equation out it's a losing thing even if they can keep the whole thing going basically somebody said it all has to do with the way the government is squeezing poor people and poor people have no more money to spend that's why they're going out of business we need to convert that entire macy's into low income housing and then somebody said low income housing doesn't pay any taxes and support the rest of society this argued into a bunch of you know you know everybody always arguing over how to distribute public funds right right right um i'll say this that you know it's just like man it's such a complicated thing but low income housing sometimes are like i've been i've lived right next to a halfway house before and i'll tell you this a lot of the things that happen outside of the halfway house like on the street it's kind of wild yeah yeah i mean it's just like you wouldn't choose to live next to there you and would can just see some stuff because they get searched before they go in their doors um somebody was saying it's all a plan to drop the real estate prices and have one company buy up everything this is the you know the conspiracies the black rock conspiracies wearing like they let urban decay happen so somebody can come up and buy up a whole city so it's uh well that's gonna happen i don't know if that's the reason why it happened but that's definitely going to happen um this last comment said man it's just such a shame it really is iconic for a large national chain it had a genuine local present presence there are just no more third spaces in america left for families to hang out and uh i'll tell you this man third spaces which is like gigantic malls outdoor shopping malls iconic regions of different cities uh even like churches they're not really like feeling like fun places to hang out anymore and even if they're still fun they might not feel safe yeah yeah yeah uh that's crazy to think about let me think man our third space is going away in my opinion and the reason why i bring that up is let's just be honest even uh joe austin that famous pastor his church guy shot up yeah that's crazy yeah and thankfully i mean they had security guards with guns too so or and the police came pretty quick that was in houston i think every church mega church is like reviewing its security gun protocol right now that's crazy yeah which is sad yeah yeah i don't know i mean i do think e-commerce was bound to increase i do think the the pandemic sped it up but then it was probably inevitable and then crime surged and then it's harder to get liquidity though for the businesses to yeah and then just ultimately like oh well think about it david we're talking about third spaces for families well guess what there's less of families there's less people less families so if there's less people with kids in the city because david this is in downtown san francisco we already know in the cities the birth rates low in the suburbs the birth rates still probably still going but we're not talking about macy's in the suburbs we're talking about macy's in the middle of the city who's going to go to the macy's in the middle of the city you know who lives in downtown san francisco if you can afford to honestly live in san francisco you're probably not going to shop at the macy's to be honest you're not a macy's demographic yeah if you make like 250k and up and then a lot of people are saying actually all the chinese tourist group used to come through and uh buy everything up but that's but obviously heavily declining here's what i disagree restaurants aren't going away people still want to eat in places coffee shops are not going away they still want to eat in places but when it comes to shopping yes it is being affected i mean we got all these brands 1587 richie lee uh collection i'm not buying stuff from macy's you don't want school of the hard did you buy that hat from macy's no i did not all right did the shirt the beads did you buy it from macy's it's an interesting omniest thing i'm not you can argue over the pie chart distribution but i think you cannot argue that all the pie slices comprise the pie all right so i guess is this even a worthy exercise for the comments down below to like break it down by percentage give us your quantitative breakdown between the crime the bad macro economic environment and access to credit and just people thinking macy's is whacking going towards e-commerce what's the split maybe there's some other pie slices we're not even let me give you my split i think 30 crime because i if i think ever if everything else was banging they'd figure out a way to secure the store the e-commerce i think is 40 percent i think that's big because ultimately that's just the way technology moves a better alternative product just like a lot of things are moving towards ai this is just the way things move by mcdonald's yeah this is the future on fortunately and unfortunately um i mean we have an e-commerce brand this is an e-commerce brand right now and then um what was the other slice uh uh oh just larger macro economic environment like uh the the building costs are too high yeah i guess that's that's all that's all the 30 percent so it's 30 40 30 boom hey guys let us know what you think in the comment section below iconic macy's in sf closed forever 100 euro brand until next time we to hop up boys we out peace