Bankruptcy and Closing
A substantial stress is facing the retail industry and has cause many stores to close over the last seven years and dozens of retail bankruptcies have been declared. The “retail apocalypse” isn’t just starting neither is over and many circumstances and factors suggest that this struggle will persist. This is a really big problem. Many North American stores closing and declaring bankrupt.
Filing for bankruptcy offers various benefits for retailers that have been struggling. Federal Bankruptcy laws govern on how companies go out of business or recover from crippling debt. (The National Law Review, 2018) Chapter 11, The debtor uses their codes to reorganize the company to become profitable again, stores management continues the business operation while business decisions must be approved by the bankruptcy bank. Chapter 7, the company stops all operations and goes completely out of business, this is when they have other problems and are unable to continue with their business operations. There are also some disadvantages because the greater the bankruptcy the greater the fees, management is faced with daily challenges and this causes stress. The biggest bankruptcy of 2018 was Sears, this was a 125-year-old business that was the largest retailer in the U.S. Sears struggled to revive and closed hundreds of stores and sold other assets in an attempt to raise cash. During this year dozens of retail stores declared for potential Chapter 11 bankruptcy, this include: Francesca’s, Forever 21, Perkins & Marie Callender, Charming Charlie, General Nutrition Centers, Mattress Firm, Dress Barn, 99 Cent Only, Pier 1 Imports, PetSmart, Inc., Crew, Neiman Marcus. (The National Law Review, 2018)
Sales are dropping and over the last few years many stores have been closing. More than 8,600 stores are closing in 2019 (Patterson, 2019) as the retail apocalypse continuous. After the retail stores don’t meet consumer goods it is probable that they will have no sales without no sales there is no profit. It is probable that consumers wants have changed this retail stores need to change the way they sell. Retailers have to keep in mind that their sales strategies aren’t working anymore because they aren’t targeting all the possible customers they have to meet everyone needs to be successful in this case we have Gen Z, Millennials, Generation X, Baby Boomers, and the Traditionalist. This graph shows how retail sales have decreased over the last 5 years.
Shopping experience is changing, some prognosticate that brick and mortal is dead. A smartphone penetration and internet use has increased and everything needed can be bought with just one click. Amazon is the one to blame it is said that it has destroyed and ruined retail. Amazon retail business competes in the worldwide market for retail and is winning. (Valinsky,2019) Their online platforms and market power have attracted the attention of everyone with their one day shipping on millions of products they are the biggest competitors to traditional retailers.
Walmart & Target
Retailer stores that are the United Sates favorite and these are winning is Walmart and Target. Target is partnering up and helping revive Toys “R” Us. This is launching this year and they want to serve even more toy shoppers than they ever did, they want to help revive the retail brand through target stores they will shop online and pickup. Their proposal for this is to create a memorable experience for kids and families. (Ziady,2019) Walmart was selling more toys than Toys “R” Us so that’s why target decided to help bring back the brand name. Target and Walmart stores offer services through brick-and-mortar and online, this is their advantage if their retail fails, which is doubted the online e-commerce will back it up. Marshalls recently opened its online store and everyone in social media have been talking about it. It is like people now days prefer to purchase from the commodity of their home than going there and not finding what you went for. It always happens that somebody needs something and they start browsing on the internet for it, so e-commerce is doing its thing but leaving us in a really bad retailpocalypse also.
Fewer Jobs in Retail
The Bureau of labor Statistics tracked 26,000 job losses at traditional retail stores. (Bruneau, 2019). The changing times have caused some business to fall victim to the retail apocalypse, by shuttering the stores and laying off many thousands of workers. It should be really though for the people that have been working in these companies for years and then just get leadoff. They are unsure of where to start again from it has been years these jobs are going gone because the brands and company stores are gone. Some, predict a recession because of the retail slow down but that just because all of out favorite companies are going bankrupt. The job losses coming from traditional department stores and clothing stores are said to be lower paying but it can be harder to find a job as it does in a recession and it can also worsen it.
It is very sad to see our favorite stores closing and thinking about never being able to wear anything from that brand company anymore. It was all because of the retail apocalypse but is something that we caused we are the customers and the ones that help them stay open and in business. We have preferred to stop at either Walmart or Target because this are bigger stores and they might have all you are looking for. Or just decide to browse it online because if you think about it in that moment you can purchase it in that moment, you don’t have to go out in either rainy or cold weather anymore all you have to do is step outside and pick it from the front porch. We have fewer jobs and that’s a problem because many people are unemployed, its not easy to find and dock to a new job. We are all very happy because out childhood favorite brand Toys “R” Us is coming back thanks to Target. This department stores will continue to battle and give their all to make it out of the retail apocalypse safe.
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