Retail Stores Closing at An Apocalyptic Pace! Why?
Retail stores, or brick and mortar stores, are disappearing at a fast pace. In a 48 hour period, Gap, JCPenney, Victoria's Secret and Foot Locker announced the closing of a combined 465 stores in 48 hours. The broader look doesn't get any better.
Here is the number of store closings by Coresight Research.
2017 - 8,139 stores shut down - a record
2018 - 5,524 stored shut down
2019 - 4,810 stores have announced their closing.....through March
At this pace, store closings will smash the record of stores closed in 2017. Why?
Maybe the economy is not as good as it is reported to be. After all, only 20,000 jobs were reportedly created in the month of February - horribly below the average. To add to that, economic numbers of all kinds are slowing; illustrating an economy that is not the reportedly "greatest ever." Probably has something to do with it. However, not the the major part of the reason.
If you are not an online presence, then you are a dinosaur in the major retail space.
Amazon continues to dominate and brings the consumer what they want - the ultimate one stop shop with free shipping and easy returns. Consumers want convenience and major retailers such as the old established former retail giants Sears and JCPenny refused to accept it. Now they are a former shell of the giants they once were struggling to survive.
Amazon, who doesn't get many things wrong, confirmed that brick and mortar retail stores are a question mark of the future as they closed down 87 of their own pop up shops because they obviously didn't work. Imagine that - Amazon trying the one thing that they were trying to shut down with their giant online presence. Retail outside of online didn't work for Amazon either - not a good sign.
Technology continues to change the landscape of America. Will there become a day when we will do everything online?