Retail stores across the country are having to close their stores, but many insiders are saying that this won’t help the inevitable collapse.
According to one former retail executive, closing stores isn’t a path to profitability. Instead, it’s a warning signal that a retailer is in an irreversible death spiral.
Part of the problem is that while many stores are losing foot traffic, many online stores are gaining more traction. Most Americans enjoy being able to shop online and like the luxury of having their items shipped to their house. Even the idea of the self-checkout at places like Walmart are getting more popular because they rarely have more than 3-4 cashiers to help their customers check out. Some customers complain of their local stores are desperately in need renovations. Customers often complain about crowds, especially during holidays and Black Friday. Theft is also a growing problem with these big retailers, which is having a huge impact on their profitability.
Instead of taking a chance and making changes, they think the best course of action is to close a massive amount of their stores. Some of these retailers are well-known names and I was a bit shocked when I saw that they were going to close, but realistically I’m not surprised with the way things are headed. It’s a lot cheaper to operate an online store than it is to operate a physical building. There are repercussions that come with closing their stores. A lot of them will have to sell their properties at a loss, they will have to lay off their employees, and sometimes they have a going out of business sale and I know a lot of people who take advantage of those sales. Even though it’s good for people like me who are always seeking a deal, it’s sad to think about everything that goes along with a store closing.