Retail has always been a high-risk business sector. It is hard to get people into stores, and it is hard to get them to buy with regularity. And this is getting harder as (1) tastes change, and (2) more nad more people buy online.
The story of “Finnish Line”, an American sports shoe chain tells you what you need to know And it is not an isolated case.
Analysts have warned of a retail apocalypse in the US, where stores per capita are much higher than that of any other country. In January, The Limited, another apparel brand primarily based in malls, shut down all 250 of its stores and laid off 4,000 workers. Mall staples Sears and Macy’s have also announced mass closures this year, with Sears planning to close 150 namesake stores and Kmart stores in 2017.
There is no “magic bullet” here. And stores cannot just “discount their way” back into profitability. We might just say that this is a slow moving train wreck. That about sums it up.