Is Amazon Killing Retail? Or Is Retail Killing Itself?
It’s not even three months into 2019, and 10 retailers have filed for bankruptcy, including clothing companies Gymboree and Charlotte Russe in San Francisco. The effect is visible on the streets, with hundreds of stores shuttered and thousands of workers laid off. The sector is on pace to surpass the closures and restructurings it experienced during the recession. But these failures come as retail spending hit a record $6 trillion in 2018, according to U.S. census figures, not an economic downturn. Is it the Amazon effect? Companies often cite a tough retail environment, despite the increase in overall spending, with shifts to online shopping and declining foot traffic, particularly at the
Since the advent of the 12 hour sale in 1982, most retailers have been increasingly focused on price, to the denigration of all other aspects of their operation. This has led to a general decline in innovation and quality, which in turn has resulted in consumers being bored and unenthusiastic about shopping. Make it fun and exciting and they will return! One can only hope.