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 certainly yet another fire hose within the bucket – increased regulations too has brought its toll and also the biggie, of course, 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.
When I begun to write this article, I was interrupted by life-events repeatedly; Christmas, Family, New Years, California Storms, Yard Work, Etc. and every time I place it off and away to another day, there was yet another unfortunate story in the news; Bloomberg Business News, CNBC, Wall Street Journal, or even the NYTs, LA Times or Washington Post Business Section, of one more downsizing, right-sizing, or bankruptcy inside 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 initially, however, if these retailers are likely to sell us cheap imported goods then people are likely to look for price, and once consumers start doing that, Sears, Macy’s and 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 was several interesting articles, one out of 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 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” published by Sarah Halzack. It comes with an interesting video on YouTube titled; “MUST WATCH! 10-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 express, retail isn’t working, those old business models are not likely to be viable later on, they only cannot contend with the efficiency of online retailing, absolutely no way, no how, so now what? Well, they say the only real constant is change, but exactly how much near-term change can our economy take? Sure, those are not great jobs, and a lot are now only part-time, but those job losses are real and extremely affect real lives. Please consider this, and don’t hesitate – be great.
Shopping in a bricks and mortar store is less flexibility with a need to travel, possible issues with parking and fixed hours. But, those that would rather order online possess the comfort of having the ability to browse and purchase things whenever you want. The cabability to avoid travelling is for sure to attract people who don’t have their own transport, those that are housebound, or simply if the weather isn’t pleasant.
When you shop in a traditional store, there is less competition and you have to simply accept the cost within the store which has the things you would like. However, it is definitely very easy to compare costs when online. There are numerous price comparison zuukud that make it possible to look for the cost of a particular item across a lot of different vendors. Plus, the internet stores can offer more incentives to come back as being a repeat customer, including promotions or discounts when subscribing to the monthly newsletter.
Online stores aren’t limited by the amount of floor area to display their stock. They have the option 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 definitely easy to start the next store in the event the preferred item isn’t available.