Why do brick and mortar retailers are not able to stay profitable? Well, many reasons exist, one has to do with increased costs of employees because of ObamaCare, but that is just another fire hose within the bucket – increased laws too has taken its toll and also the biggie, needless to say, is the growth with great blog. How did things get so bad? Well, within their race for profits, these name-brand big retailers started selling us inferior Chinese Made products, dressing them up nicely with well-done marketing.
Because I started to write this post, I had been interrupted by life-events many times; Christmas, Family, New Years, California Storms, Yard Work, Etc. and each time I put it away and off to another day, there is yet another unfortunate story in news reports; 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 within the retail sector – stores closing, vendors hosed, employee layoffs – it’s not looking too good, until 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 likely to sell us cheap imported goods then people are likely to go shopping for price, and once consumers start doing that, Sears, Macy’s and other big box retailers can’t compete because of the 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 concerning the first week of 2017. The very first was titled; “Sears to seal 150 More Stores, Sells Craftsman Brand,” as well as the second one was in the Wall Street Journal “Macy’s and Kohl’s Are Hit by Weak Holiday Sales – Macy’s to reduce a lot more than ten thousand jobs, close stores; Kohl’s lowers profit targets.”
On January 6, 2017 the Washington Post had an article titled; “The Limited is closing most of its 250 stores” published by Sarah Halzack. There is an interesting video on YouTube titled; “MUST WATCH! 10-main reasons why world economy collapse in 2017 – NEW,” which stated that Sam’s Club have also been closing many less-than-optimal stores, again ten thousand job cuts there.
Suffice it to say, retail isn’t working, those old business models will not be viable in the future, they only cannot contest with the efficiency of online retailing, no chance, no how, so now what? Well, they are saying the only real constant is change, but exactly 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 all 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, people who would rather shop online possess the convenience of having the capacity to browse and purchase things at any time. The ability to avoid travelling is for sure to appeal to people who don’t have their own own transport, the ones that are housebound, or simply when the weather isn’t pleasant.
When shopping in a traditional store, there exists less competition and you will have to merely accept the price inside the store that has the items you would like. However, it is really easy to compare prices when online. There are many price comparison zuukud that make it possible to look for the price of a particular item across a long list of different vendors. Plus, the web stores provides more incentives to return being a repeat customer, such as promotions or discounts when registering for the monthly newsletter.
Online retailers aren’t limited by the quantity of floor space to display their stock. They have the choice of displaying by far the most impressive choices that could never fit on the shelf space of a bricks and mortar store. Also, when online it is really very easy to begin the next store in the event the preferred item isn’t available.