Amazon Empties Storefronts Around America

Just read todays New York Times article on the disappearance of stores around New York City. Neighborhoods are built around people living, socializing and shopping locally. New Yorkers love to chat in stores and restaurants, sharing small talk with fellow shoppers, fellow diners, waiters, employees. We all love being recognized and a neighborhood store gives you a feeling of belonging. And especially if they know your name—that’s the best!

Just like the theme song to the “Cheers” show said in the song lyrics:

Sometimes you want to go 

Where everybody knows your name, 

And they're always glad you came; 

You want to be where you can see, 

Our troubles are all the same; 

You want to be where everybody knows your name. 

The Internet, of course, has been the great disruptor. Record stores were one of the first to go. The computer geniuses invented Napster and the file-sharing applications. No need to buy CDs.  Just burn the digital files. And iTunes made it all legit. You could now buy the songs you wanted from the comfort of your home—and use iTunes in a totally secure, legal environment. But the record stores disappeared.

Next the newspapers started to disappear. Why pay for a paper copy of the news when you can read 10-15 papers from around the country and never have to pay a dime. But then the newspapers disappeared—and even the strongest among them, New York Times. Los Angeles Times, Washington Post, etc. have to struggle to keep readers and stay relevant. They all became online newspapers in the process.

Jeff Bezos, the mastermind behind Amazon, bought the Washington Post, a somewhat counter-intuitive business decision since his online company Amazon.com is the king of all disruptors of the status quo. Why did Bezos want a print newspaper? Not only that—the Washington Post has become a relentless pursuer of the liberal-point-of-view. Bezos and his newspaper have been dogged in exposing the Donald Trump shenanigans and Trump doesn’t like it. By this point in his career, Bezos could have bought Nantucket Island. Maybe he felt some guilt for the decimation of print media?

Jeff Bezos, Bill Gates and Warren Buffett, the three wealthiest Americans, have as much wealth as 50% of the population. These three men have a net worth equal to entire lower half of the American economy. That’s a lot of people in a country with a population of 323 million.

Bezos and Gates obviously have their vast fortunes closely tied to the rise of digital technology. The eco-system of our economy has been shaken and overwhelmed by the changes imposed by technology. Much like an environmental eco-system, our infrastructure is losing diversity at a rapid rate. Our climate is being reduced to less variety—temperatures almost always seem too warm. The flora and fauna, overwhelmed by climatic changes, and reduces its variety as we lose species. A simpler eco-system always spells disaster and we race headlong towards over-simplification of climate, environment and societal structures.

Bezos boldly expanded Amazon.com with a confidence that shocked the business world. Carpe diem. He seized the day. He virtually stole the day, and the economy along with it. Bezos realized Americans would love shopping on their computer, getting lower prices than the brick and mortar stores, and delivering groovy packages right to your doorstep..

The downside, of course, the stores are disappearing—part of the social network that existed long before the online networks. The people who acknowledged our existence at the local supermarket or bookstore—make us feel alive. If the stores disappear, the city streets lack their usual vibrancy.

Let’s call it a case of too much disruption.