Stores - Here Today, Gone Tomorrow!

 The other day, I received an e-mail from Payless shoes telling me they were closing down and going out of business. This surprised me as I never thought they'd have money issues.  The same could be said for Sam's or Sears, both of whom are no longer in my town.

Sears has. been around since the late 1800's with their mail order catalogues and stores but to be no more is hard to grasp.  I realize that online shopping has cut into the customer base and profit of regular stone and mortar stores.

Some chains are closing some of their stores such as Victoria's Secrets, or Macy while others are completely closing every store they have.  It depends on how much money they are loosing.  Macys is planning on closing at least 11 stores this year after closing over 70 in the past two years.  They plan to rely only on the top moneymakers and their online presence.

One chain, Henri Bendel, is closing all of its stores due to the decreasing demand for high end luxury fashion accessories.  They got their beginning in 1895 in New York city.   The parent company is planning on focusing on other chains such as Bed and Bath.  Victoria's Secrets, also owned by the same parent company, is closing 53 of its stores this year due to a lack of sales.

These are not the only name brand chains closing or greatly reducing their physical presence.  As mentioned before Payless shoes is closing all its 2000 plus stores and shutting down its website.  The company that owns both Gap and Old Navy will close down at least 230 stores in 2019 while splitting off Old Navy as it is profitable.

Another one, Charlotte Russe - maker of teen age apparel, plans to close all 419 of its stores in 2019 after it filed bankruptcy back in February.  The chain, Gymboree, is also closing all 800 stores after filing bankruptcy.  Not all chains closing down are clothing or lingerie.  Tesla, which builds affordable electric cars, plans to close out most of its showrooms and switch its sales to online only during 2019.  The few showrooms they leave open will act as information centers.

The discount store chain, Dollar Tree which acquired Family Dollar Stores in 2015, is going to close 390 Family Dollar Stores while trying to update over 1000 more because many are looking extremely rundown.  Closing these stores, frees up money for renovations.

Furthermore, Office Max and Office Depot will be closing an additional 50 stores, the same number as K-mart is planning to close this year.  Other chains such as Fred's, Chico's, Shopko, Performance Bicycle, and others are closing store after store for a recored breaking total of 7,100 stores nation wide.

There are several reasons why this is happening.

1.  Originally stores were a place that merchants could assemble a wide variety of products for people to check out and buy but with the growth of the internet and e-commerce, people can do the same thing without leaving home.  Thus there is less demand for physical locations.

2.  The needs of the consumer have changed over the past few years so the brick and mortar stores are no longer meeting their needs.  The needs vary according to the age of the consumer and its getting harder to carry products to meet the demands of the different age groups.

3. On-line stores often carry better selections than local stores for better prices, and are much more convenient.  Since I live in the Bush, I do order via on-line retailers who do not charge shipping and offer more things than I can find in a small store resembling a convenience store.

Many times, companies close down retail stores in the first quarter of the new year because the Christmas shopping season is over and the stores have a better idea of which ones are not performing as well as needed.  

So many retail stores have begun to have people order and pay for items online to be picked up at their local store so all they have to do is stop by and everything is ready for them.  They do not have to "waste" time going in, shopping, and standing in line.  It is all ready for them.  This is the compromise for the future because you don't have to wait several days for your items to arrive.  You still shop from the comfort of your home while picking your items up on the way home from work.

Let me know what you think, I'd love to hear.  Have a good day.