2009 Retail Industry Predictions: Closing Stores, Going Out of Business, and Getting Back to Basics
There are many retail chains that will be forced out of business in 2009 by their own debt structure and the global credit crunch. There are also many retail stores that will close storefronts in 2009 because a recessed economy demands a recessed retail industry. That’s just the way the economy ebbs and flows.
There will be some well-known retail companies that declare bankruptcy in 2009 because their concept is indistinct and their merchandise is redundant. It’s not enough to just show up any more. Retailers need a compelling offer in order to justify their existence.
At a boardroom level, many accountability discussions about financial mismanagement, forecasting failures, same store sales declines, merchandising missteps, and not so unique selling propositions will be had this year. In 2009, employees at all levels in the retail industry will need to learn and live the serenity prayer, as they accept the things they can’t change, change the things they can, and maintain disciplined focus in order to know which is which. More...
I have been in business for 14 years, and am being forced to close my doors as the economy in the small town in which I live is beyond horrible. I believe most of what you are saying, however, even small retailers that do offer “fabulous” service, products and staff-will be closing their doors in 2009. I hear what you are saying, but, I really think that all we will end up with in our town is WalMart, Starbucks and Taco Bell-and I’m not even sure if they will be able to make it.
As a nation we’re over retailed meaning to many choices, to many distractions yet America’s retailers still refuse to build relationships with consumers in a meaningful way.
It’s a slow process to get retailers to change from the old ways that mostly don’t work to new ways of marketing that do work meaning getting the customer more involved by making a home for them through e-newsletters, direct mail, text messaging, special events and more.
Being in the commercial remodeling market and serving mainly big box (Wal-Mart) retailers, we have only seen a jump in the number of stores going into refresh or remodeling projects. We see companies like Sears (and K-mart), Kohls and others cutting back on their remodeling programs while Wal-Mart doubled the size of their program to fend off the encroachment of Target in markets where stores are or will be competing.
I do believe that the retail sector will see many closings in 09′, but I do not think that the doom and gloom forecasts will pan out. I think that many of the closings will be mom and pops located in saturated markets, and the total closings will most likely be in the 70 to 90,000 range.
Having worked in several overseas market with some powerful brands in various concepts, seems the true discount format stores will have the edge under the present economic scenerio.
The latest management concept of fast outpacing the slow will be taken over by the the mighty killing the weaker.
There can be a scenerio where the big retailers will go for brand takeovers trying to kill the competition and then going for consolidation.
The worst thing retailer can do is offer heavy discounts through agressive promotions or sales and expand the time frame to achieve the top line. this will adversely effect the customer behaviour and spending habbits. The peak trading season looks grim with weaker or neagtive bottom line.
America is going to follow Europes shopping model.Buy only the best,something that is made to last.Only buy what you need ,nothing more ! Of course stores like Walmart and Dollar Tree will survive for cheap daily use items and food.We need to start government work programs to employee the millions out of work.
I just wrote a story for EzineArticles (and several others) on this very topic. Great story and info here. One thing I discovered (not mentioned); is that shopping for a consultant/expert is like shopping for a car or doctor. There are good ones and dismal ones. A good turnaround expert can do you good, a bad one can do wonders than when you first got in trouble.
I really feel emotionally connected with the comments I’ve read, so with this being, I wish the best of luck to the companies going out of business.