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Simon says, “Open the malls.”

Simon says, “Open the malls.”
In January I tried to purchase the distressed mall-staple Forever 21, but was outbid by Simon Property Group, who owns a bajillion malls and outlets around the country. 

And now Simon is trying to take another calculated risk, by reopening their malls in the middle of a global pandemic.

The question they should be asking isn’t “when should we reopen the malls?”, but “should we reopen the malls?”
In January I tried to purchase the distressed mall-staple Forever 21, but was outbid by Simon Property Group, who owns a bajillion malls and outlets around the country. 

And now Simon is trying to take another calculated risk, by reopening their malls in the middle of a global pandemic.

The question they should be asking isn’t “when should we reopen the malls?”, but “should we reopen the malls?”

If you look at the data out there, the answer is “probably not”.

People aren’t too hyped to shop right now. In fact, 45% of people say they are going to avoid malls, even after the lockdown is over. And that they’d rather step foot in a movie theater or public transportation than a mall. 

So while Simon may say, “get to shopping in our malls”, I say that’s a bit of a stretch at this point. 

Retail needs to get on the e-commerce train, because it’s already left the station. Meanwhile, brick and stores are permanently delayed with an “engine issue”.

Reopening malls won’t fix brick and mortars problems...the only thing it’s reopening is old wounds. It’s not worth the risk at this point….and I’m not sure it ever will be, honestly. 

I believe that post-COVID, there’s going to be significantly less demand for brick and mortar stores .
You don’t have to believe me...listen to the data instead.

But I’ll continue to bet on e-commerce.

- Tai Lopez
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You’ll Need More Than Sanitizer to Safeguard Your Business

You’ll Need More Than Sanitizer to Safeguard Your Business
As the pandemic is beginning to slow, businesses are starting to see a light at the end of the COVID tunnel...

And what they likely see at that end is their state governments standing by the exit, asking how they plan to open safely.

While some companies saw the writing on the wall and switched to at least a partial e-commerce model before COVID, most companies were unprepared for this unprecedented situation and have been completely grounded since March.
As the pandemic is beginning to slow, businesses are starting to see a light at the end of the COVID tunnel...

And what they likely see at that end is their state governments standing by the exit, asking how they plan to open safely.

While some companies saw the writing on the wall and switched to at least a partial e-commerce model before COVID, most companies were unprepared for this unprecedented situation and have been completely grounded since March. 

But they don’t want to be unprepared anymore, so the Retail Industry Leaders Association (RILA) put together a detailed memo calling on governors to open up warehouses and distribution centers across the county at the same time and outlining stringent health and safety measures once they’re open. 

The RILA president said retailers want to demonstrate to governors that they’re prepared to hit the ground running when the economy returns for business.

But, in my opinion, I think these retailers are focusing on the wrong question.

While they should be concerned about the safety of the public, they also need to be concerned about the health of their business.

In other words, is it safe to jump right back into their previous retail model, when the demand for retail hasn’t returned?

Look, I hate to be the party pooper,  but safety measures aren’t going to save your business if people aren’t buying what you’re selling.

In business, you need a contingency plan for your contingency plan for your contingency plan.
Long before this unprecedented pandemic, and long after, your business should be prepared to sell to anywhere, from anywhere. The companies that thought ahead and switched to e-commerce previously are making green...while strictly brick and mortar stores are waiting for the government’s greenlight.

Take note of this life lesson: always think three steps ahead.

Tai Lopez
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Adidas Runs to E-commerce

Adidas Runs to E-commerce
The key to surfing is catching the wave before it breaks. And the same goes for the next wave in business...

You don’t want to wait till the concert sells out to buy tickets, or you’ll pay the price.

I’ve always been a big believer in staying ahead of the curve. I got into online education when people thought it was crazy. I started  FarmersCart, before getting groceries delivered to your door was a thing. 

And I clearly got into the retail e-comm game at the right time with Dressbarn….
The key to surfing is catching the wave before it breaks. And the same goes for the next wave in business...

You don’t want to wait till the concert sells out to buy tickets, or you’ll pay the price.

I’ve always been a big believer in staying ahead of the curve. I got into online education when people thought it was crazy. I started  FarmersCart, before getting groceries delivered to your door was a thing. 

And I clearly got into the retail e-comm game at the right time with Dressbarn….

And now the big fish are following suit by doubling down on e-commerce.

If you keep waiting on what the big brands are going to do, you’ll be too late.

I’ve been telling you to pivot to e-commerce, before anyone knew that COVID-19 even existed.
 
Big brick and mortar brands can no longer rest on their reputations--their foundation is crumbling.

Check out Adidas. Yeezy can’t save them, but e-comm might. They lost $5 billion in sales in the first quarter of 2020, so they’re going all in on their online efforts in the hopes of a rebound.

Their new business model is laser focused on digital acceleration.

In fact, their new plan is straight out of my playbook: a nice discount code, a little CSR donation, 90-day returns, and free shipping...check, check, check, and check...or, rather, stripes. . 

The lesson: even in what feels like  a business apocalypse, there’s opportunity.

-Tai Lopez
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The Most Important Day of the Year

The Most Important Day of the Year
One day may decide everything. 

Amazon’s “Prime Day” is coming up soon. It’s sort of a summer Black Friday… where big brands move a ton of inventory in on fail swoop. 

It’s going to be a make-or-break day for many big brands like Gap and Saks. 

If they can pull in a decent day… maybe there’s hope. 
One day may decide everything. 

Amazon’s “Prime Day” is coming up soon. It’s sort of a summer Black Friday… where big brands move a ton of inventory in on fail swoop. 

It’s going to be a make-or-break day for many big brands like Gap and Saks. 

If they can pull in a decent day… maybe there’s hope. 
But if consumers aren’t buying even at deep discounts… castles will fall. 

And since one of my favorite pastimes is learning from other people’s mistakes, I’ll have my popcorn out, watching closely for who wins and loses. 

Tai Lopez
 
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How to See Trends Before Everyone

How to See Trends Before Everyone
It’s interesting how tough times make people remember all the simple things in life, like food.

If you’ve been watching the news, meat and food shortages are becoming a real thing. (“food shortages are becoming a real thing”) And nothing will get a nation more focused on something than the fear of starvation. But remember: every piece of bad news brings with it an opportunity....

That’s why Alex and I are seeing our meat shipping company’s sales soar since CoronaVirus (farmerscart.com). 
It’s interesting how tough times make people remember all the simple things in life, like food.

If you’ve been watching the news, meat and food shortages are becoming a real thing. (“food shortages are becoming a real thing”) And nothing will get a nation more focused on something than the fear of starvation. But remember: every piece of bad news brings with it an opportunity....

That’s why Alex and I are seeing our meat shipping company’s sales soar since CoronaVirus (farmerscart.com). 

Basically people get a box filled with beef, chicken, and pork (with dry ice) - and we’re soon expanding to include dairy, dry goods, and healthy vegetables. 

We saw this trend before it happened and have been securing our niche in the rapidly growing online food-shipping business. 

Online grocery delivery is up 12% MOM. 

We basically want to be a competitor to Whole Foods. 

By the way: if you don’t watch the commodities and futures market… you should.

Watch the price on feeder, cattle, corn, rough rice, and pork bellies: if you do you’ll see trends faster than everyone else. 

Tai Lopez
 
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What Makes People Rich

What Makes People Rich
Basically what’s happening in the economy is the two most backward industries have found themselves in bed with each other and simultaneously crushed by the market. 

Retail and shopping malls. 

Retail is mostly in the dark ages: companies like Pier 1 don’t even have an app on the App Store.

Shopping mall REITS have been idiotically doubling down and building bigger and bigger indoor malls.
Basically what’s happening in the economy is the two most backward industries have found themselves in bed with each other and simultaneously crushed by the market. 
  
Retail and shopping malls. 

Retail is mostly in the dark ages: companies like Pier 1 don’t even have an app on the App Store.
 
Shopping mall REITS have been idiotically doubling down and building bigger and bigger indoor malls.

For example in Los Angeles, I watched the Century City mall company invest billions into making it even bigger. Even though everyone in LA likes to go to the Grove, which is an outdoor mall.
 
So basically when you have two industries with stupid strategies in business with each other and hard times hit, it’s not surprising they’re headed towards calamity. 
 
Like Charley Munger tells Warren Buffet, “Warren, if it wasn’t for the stupidity of other people, we wouldn’t be so rich.”

The solution is to always be one step ahead of the game.

Retailers have to transform into e-comm retailers and mall owners need to reduce their footprint and build more mixed-use buildings, for example with residential apartments on top of commercial. 
 
-Tai Lopez
 
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