So Many Closings, So Much Opportunity
The weight of both high overhead and sharply reduced revenues is forcing large retail chains to implode. This is serious. But as with so many situations, one person’s disaster may be another person’s opportunity!
Here is a list of some of the store closings announced for 2008:
84 Lumber Co. – 30 stores
Ann Taylor – 117 stores
Charming Shoppes (Lane Bryant & Fashion Bug) – 150 stores
Foot Locker – 140 stores
Macy’s – 9 stores
Movie Gallery – 160 stores as part of reorganization plan to exit bankruptcy
Pacific Sunwear – 153 Demo stores
Pep Boys – 33 stores
Sprint Nextel –125 retail locations
Wilsons the Leather Experts – 158 stores
Zales — 100 stores
J. C. Penney, Lowe’s and Office Depot are scaling back or delaying expansion. Office Depot had planned to open 150 stores this year, but will now open 75.
(Source: http://risnews.edgl.com/retail-news/Sign-of-the-Times–6,000-Retail-Store-Closings-in-200837138)
Wow! That’s going to have significant impact on the marketplace.
Small local stores and small chains take note, there will be opportunity this Christmas. People will shop elsewhere, perhaps at your store! Even though consumer spending will be far lower this season, there will be less competition from the chains as they are going out of business rapidly. You may be the “last store standing” in your specialty area and thus be the recipient of increased demand. Check the list and if any are in your market and were previously competing with you, plan your season accordingly without their influence.
On the other hand, this devastation, this parade of bankruptcies of significant business enterprise is a sobering wake-up call. It’s screaming at us to tighten our business, control our costs, build profitable businesses. Do preemptive workouts if you are debt heavy. This is the only way to survive this economic downturn. Get better.
Every business owner is at risk of losing their business as we are experiencing a severe downturn. You must do something to protect your future. To do nothing is to accept defeat and ensure your demise.
