Why do brick and mortar retailers are not able to stay successful? Well, there are many reasons, one has to do with increased costs of employees because of ObamaCare, but which is just another fire hose in the bucket – increased regulations too has taken its toll and also the biggie, of course, is the growth with read this 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.
As I began to write this short article, I was interrupted by life-events many times; Christmas, Family, New Years, California Storms, Yard Work, Etc. and every time I use it away and off to another day, there was another unfortunate story in news reports; Bloomberg Business News, CNBC, Wall Street Journal, or even the NYTs, LA Times or Washington Post Business Section, of 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 online retailer. Let’s talk shall we?
Why did that strategy fail? It didn’t at first, but if these retailers are going to sell us cheap imported goods then people are going to go shopping for price, and once consumers start doing that, Sears, Macy’s along with other big box retailers can’t compete because of their higher cost structure, and Jeff Bezos of Amazon, well, he takes no prisoners; “no mercy expected, none given,” motif.
There have been a couple of interesting articles, one in Total Retail on or concerning the first week of 2017. The initial was titled; “Sears to seal 150 More Stores, Sells Craftsman Brand,” and the second one was in the Wall Street Journal “Macy’s and Kohl’s Are Hit by Weak Holiday Sales – Macy’s to cut a lot more than 10,000 jobs, close stores; Kohl’s lowers profit targets.”
On January 6, 2017 the Washington Post had a post titled; “The Limited is closing all of its 250 stores” published by Sarah Halzack. There is an interesting video on YouTube titled; “MUST WATCH! 10-explanations why world economy collapse in 2017 – NEW,” which stated that Sam’s Club was closing many less-than-optimal stores, again ten thousand job cuts there.
Suffice it to say, retail isn’t working, those old business models are not going to be viable later on, they just cannot contend with the efficiency of online retailing, absolutely no way, no how, now what? Well, they claim the sole constant is change, but exactly how much near-term change can our economy take? Sure, those usually are not great jobs, and most are now only part time, but those job losses are real and extremely affect real lives. Please consider all of this, and don’t hesitate – be great.
Shopping in a bricks and mortar store is less flexibility having a have to travel, possible difficulties with parking and fixed hours. But, the ones that choose to shop online hold the comfort of having the ability to browse and purchase things anytime. The cabability to avoid travelling is certain to interest the ones that don’t have their own transport, those that are housebound, or simply once the weather isn’t pleasant.
When you shop in a traditional store, there is certainly less competition and you will have to easily accept the purchase price within the store that has the products you desire. However, it is definitely simple to compare costs when online. There are plenty of price comparison zuukud making it possible to look for the cost of a particular item across a long list of different vendors. Plus, the web stores can offer more incentives to return being a repeat customer, such as promotions or discounts when signing up for the monthly newsletter.
Online stores aren’t limited by the quantity of floor area to present their stock. They have the choice of displaying probably the most impressive choices which could never fit on the shelf space of the bricks and mortar store. Also, when online it is definitely simple to move onto the following store in the event the preferred item isn’t available.