Why is it that brick and mortar retailers are unable to stay successful? Well, there are many reasons, one has to do with increased costs of employees as a result of ObamaCare, but that is yet another fire hose in the bucket – increased laws too has taken its toll and the biggie, of course, is the growth with great blog. How did things get so bad? Well, in their race for profits, these name-brand big retailers started selling us inferior Chinese Made products, dressing them up nicely with well-done marketing.
As I began to write this article, I had been interrupted by life-events many times; Christmas, Family, New Years, California Storms, Yard Work, Etc. and each and every time I put it away and off to another day, there is one more unfortunate story in the news; Bloomberg Business News, CNBC, Wall Street Journal, or the NYTs, LA Times or Washington Post Business Section, of yet another downsizing, right-sizing, or bankruptcy inside the retail sector – stores closing, vendors hosed, employee layoffs – it’s not looking too good, except if you are an internet retailer. Let’s talk shall we?
Why did that strategy fail? It didn’t in the beginning, but if these retailers are going to sell us cheap imported goods then people are likely to go shopping for price, and when consumers start doing that, Sears, Macy’s and other big box retailers can’t compete due to their higher cost structure, and Jeff Bezos of Amazon, well, he takes no prisoners; “no mercy expected, none given,” motif.
There were a few interesting articles, one out of Total Retail on or about the first week of 2017. The very first was titled; “Sears to Close 150 More Stores, Sells Craftsman Brand,” and the second one is in the Wall Street Journal “Macy’s and Kohl’s Are Hit by Weak Holiday Sales – Macy’s to reduce a lot more than 10,000 jobs, close stores; Kohl’s lowers profit targets.”
On January 6, 2017 the Washington Post had an article titled; “The Limited is closing all of its 250 stores” authored by Sarah Halzack. It comes with an interesting video on YouTube titled; “MUST WATCH! 10-explanations why world economy collapse in 2017 – NEW,” which stated that Sam’s Club was also closing many less-than-optimal stores, again 10,000 job cuts there.
Suffice it to state, retail isn’t working, those old business models are not going to be viable down the road, they just cannot contend with the efficiency of online retailing, no way, no how, so now what? Well, they say the sole constant is change, but just how much near-term change can our economy take? Sure, those usually are not great jobs, and most are only part time, but those job losses are real and incredibly affect real lives. Please consider this, and don’t hesitate – be great.
Shopping in a bricks and mortar store is less flexibility having a need to travel, possible difficulties with parking and fixed hours. But, those that would rather order online possess the comfort of having the capacity to browse and get things whenever you want. The ability to avoid travelling is for sure to appeal to those that don’t get their own transport, those that are housebound, or simply when the weather isn’t pleasant.
When you shop in a traditional store, there exists less competition and you have to easily accept the price inside the store that has the things you desire. However, it is really simple to make a price comparison when online. There are many price comparison zuukud which make it possible to determine the cost of a particular item across a long list of different vendors. Plus, the web stores can provide more incentives to come back as being a repeat customer, such as deals or discounts when subscribing to the monthly newsletter.
Online retailers aren’t limited by the volume of floor space to present their stock. They have the choice of displaying the most impressive choices that may never fit on the shelf space of any bricks and mortar store. Also, when online it really is very easy to begin another store in the event the preferred item isn’t available.