Lessons from all the big chain Retail Stores Closing down.

Did you hear about all these big name stores closing down? Unfortunately, it has been quite a trend lately. I think it was expected and such news headlines can be in the near future.

So what is the reason behind all of this? What should have been done to save these store from closing and all the unemployment situations that surround them.

Let’s see who all are closing or already have been closed.

• Payless, shoe company, which ran for good 60 years is bankrupted and closing down its stores.
• Gymboree, children’s clothing store, ran for 43 years and is closing all its store in the 3 countries which are almost 1200 stores according to the Global News.
• Toys r us closed down in the US last year.
• Hudson’s Bay Co. announced Thursday it will close its housewares chain Home Outfitters in Canada. They are also in the process of reviewing and deciding on its other company Saks 5th.
• Victoria Secret is closing down a good number of its stores, analysts said as on USA Today.
• J.C. Penney plans to close 15 additional full-line stores and nine home-and-furniture locations as the retailer struggles to get its footing amid significant challenges for department stores
• Gap is closing its 230 stores in the next 2 years by CNBC news.

But on the other hand, Old Navy is becoming its own company. It has been reported that Gap is dividing into two publicly traded companies.

Now that’s good news for GAP. I would have been extremely sad if Old Navy was closing down, and so would many of my girlfriends. It’s very popular amongst many of us. I alone might be partly responsible for a chunk of its profit share.

So what’s exactly going on with these retail stores? To my understanding, after reading all the reports on these companies I have come to fews conclusions which I would like to share with you all and would appreciate your inputs as well. Share then in the comment section.

Although there are separate factors which affect all these companies individually, some of the factors are common from which all other businesses can learn.

Let’s see what they are as per my knowledge.

• The consumer mindset has been changing, there has been a shift in shopping pattern and lifestyle. Online shopping is a big change but is not the only reason for bankruptcy.
• Increase in competition has given consumers more options to search from.
• With the shift in consumer behavior, companies need to change their business strategies. Business strategies need to be revised often, they need proper attention. These companies didn’t make any necessary change in their strategies.
• Financial trouble, unable to keep up with sales and operations along with the interest payments to the shareholders has been quite a struggle to deal with for many companies.
• Payless was the only one left behind out of all those listed above who didn’t invest much in its marketing & branding and was too late to catch up with the millennials focus.

Current consumer/ millennials have a different style and choice of selection. They prefer to buy online to be able to use their time wisely. The choices online are large and cheap with a lot of reviews given by their fellow customers.

Amongst all of this GAP did pretty good in making a change in its business model. Their attempt in this can be beneficial, it has already seen a hike in its shares.

So just to keep it short I would conclude that businesses need to constantly monitor the change/ shift in the consumer market and keep revamping their strategies. If they are spending more time in one area and aren’t focused on forming their new business strategies or changing business models they are going to lose out by the time they will realize, which exactly has been happening. The trend changes very quickly and with the development of technology it is changing at a very fast pace.

Wisdom Thoughts :

• If one is not keeping up with the requirements you can be out of the game very quickly.
• It’s the change in the Business model that needs to be adapted.

Simple Steps

1. Have analysts check your consumer trends on regular basis.
2. Make use of predictive analysis provided by the software with artificial intelligence.
3. Regularly go over Business strategies to make the changes, keep them flexible to have room for change because the pace of change keeps increasing.
4. Hire Business Consultants and make use of their wisdom and experience.

What do you think of this article? What are your views? What can you learn from all this?