Retailers are closing down rapidly in 2019

By Ace Prado on October 2, 2019

The year is almost over and store closures does not appear to slow down the retail industry. Everybody is noticing that retailers are closing down in large numbers, and most media outlets are distributing terrible news leaving consumers confused. Whether you went shopping at Sear, J.C. Penny, Charlotte Russe, or Forever 21, many of these big chains or anchor stores are closing locations that do not make any profit.

Since retailers are closing down rapidly this year customers are asking the five W’s: “Who, What, When, Where, How, Why.” Brick-and-mortar stores such as Sports Authority, Radio Shack, Gymboree, Wet Seal are some of the stores that had already disappeared. Yet, the list still continues. CNBC explains that there will be an approximate of 7,062 store closures that can tally up to 12,000 by the end of the year.

Time is too crucial:

The decline of foot traffic in brick-and-mortar is not something new. Foot traffic in the best shopping malls in the U.S. have been falling. At these crucial times, retailers are planning to reconstruct and use promotions to get consumers’ attention. CNBC reports a few specific reasons why retailers are not doing well compared to the past.

One of the reasons why retailers are not doing well is that stores are pulling back on discounts. E-commerce is continuing to advertise several types of promotions that brick-and-mortar failed to do. In this type of act, consumers are deciding to shop online at their own leisure. But discovering a new strategy to lure customers into stores/shopping malls is difficult. Mall landlords are adding tenants such as Dave and Busters, Legoland, Crayola Experience, etc., to lure shoppers.

Another reason stores are not receiving the best results is that holding too much debt will lead to trouble. Brick-and-mortar stores are seeking financial advisors to clear up their finances. Seattle Times explains that retailers are forced to restructure the entire company to pay all of the debt, avoid bankruptcy, and possible sales. Besides getting all finances under control, another difficult task is to keep young consumers from investing in online and other mall retailers.

2019 comes to an end, what is the “NEW” game plan:

Since the brick-and-mortar stores are struggling against online competition, retail companies are changing game plans to get everyone back into the store. At these crucial times, there is NO time for mistakes! From handling finances inefficiently, buying terrible merchandise from vendors, unnecessary remodeling, etc. retailers are suffering from terrible consequences if mistakes keep occurring. The best stores that survive the retail apocalypse will stay standing. In July, sales rose by approximately 0.7%. CNBC states that retailers struggled to create 0.3% in June. Although, there are signs of improvements people forget to remember that consumer spending is the primary driver for a healthy U.S. economy.

Since Back-to-School shopping, Halloween, and Winter holidays are lingering around, most retailers are planning to shut down stores to shift the focus when the busiest times arrive. Surviving stores are attempting to finish paying debt, rent, and looking for creative ways to get you and your paycheck. Target, Walmart, and Khols are three big corporations that changing the traditional department stores this year leaving Macy’s and Jcpenny. According to CBS, Target, Khols, and Walmart changed their strategies in marketing and introducing new clothing brands and collaborating with big-name celebrities such as Kylie Jenner.

Hi my name is Ace Prado. I am a San Francisco native who is a broadcaster with an interest in entertainment, social media, pre-production, and production. I completed my Bachelors degree in Broadcasting Electronic Communication of Arts. I have developed soft and hard skills through coursework in production, video editing, script writing, reporting, and distributing content. In addition, my internships and hands on experience helped me become a well rounded person.

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