The Retail Apocalypse
posted by Iliana Vega | April 24, 2019 | In NewsYou have probably seen or heard of many retail stores closing in the last couple of years. Many stores such as Kmart, Sears, Toys “R” Us, Gymboree, Claire’s, Payless ShoeSource, Wet Seal, and even some Walmarts have closed down, sometimes closing individual stores, while others disappear altogether. A Coresight Research report noted that store closings are up 23% in 2019 with 2,187 closings, according to USA TODAY.
Many other stores are being added to the closing list, but why?
Many analysts attribute the closings to an increase in online shopping.
As Vox reported: “The Kmarts and Macy’s of the world, however, are not well-positioned to take refuge in any of e-commerce’s major shortcomings. They’re big places full of a lot of stuff that you’d like to have but probably don’t need on an emergency basis. They don’t serve a strong curatorial function or have particularly beloved brand identities. There’s nothing quirky and unique about them.”
As more and more people turn to online shopping, we have entered a new era of shopping. But what does this mean for small businesses and large corporations like Target and Walmart? It doesn’t give small business a chance to grow, and it gives large money-hungry corporations like Amazon permission to bulldoze through malls and retail stores.
According to Business Insider, roughly a third of all shopping malls will be closed by 2020. In the next five years, the predicted shift is for malls to become more of a place of leisure and entertainment instead of shopping.
Changes have even come to our Cross Creek Mall, here in Fayetteville. The Fayetteville Observer reports that when Sears closed as an anchor store in January 2019, plans started to transform the mall from a retail center to more of an entertainment center, with Dave & Busters then becoming the anchor.
As reported by the Fayetteville Observer, CBL Properties’ spokesperson Leigh Burnett said, “Most of the projects would be outdoor projects with different buildings out there. Different groups of buildings. Our vision is a combination of food, entertainment and some retail.” CBL Properties owns and manages Cross Creek Mall.
As e-commerce is one of the largest growing trends, the only way small businesses will have a place online is if they shift their focus to generating sophisticated websites and customer service couriers. All these things have something in common—warehouses and factories. For the meantime, you shouldn’t worry so much. Instead try to look for new ways to boost your skill and resume, especially if you work in retail.
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