The truth of the matter is that more and more people are online. Of all the activities that can be done online, buying things is one of the most popular. It’s just too easy to order anything, from food to clothes to car insurance. Not only is it super convenient, but it’s usually cheaper, too.
So what does this all mean for physical brick and mortar stores? Well, it’s not good news. It’s actually really bad news. If retail chains and companies don’t get creative and adapt to today’s online market, they will start to drop like flies. Look at what’s happened to heavy hitters like Sears and Toys R Us!
These are American companies that are facing the reality of bankruptcy. They’re in debt by the millions and billions. So you might want to prepare for some major liquidation sales in the near future.
This clothing company favored by the former first lady has had to close some of its stores due to a major drop in sales over the years. Their bridal store also closed and parted ways with its creative director, Jenna Lyons, and CEO, Millard “Mickey” Drexler. Drexler admitted that he thought the company’s problems stem from raising the prices.
Drexler pointed out that J. Crew raised prices and went through an expansion during a period when consumers were becoming more thrifty. Drexler left his job at J Crew of 14 years to be replaced by former West Elm CEO Jim Brett. J Crew suffered nearly $2 billion in debt, but a debt exchange in June gave the company some relief.