The Retail Industry Is Facing A Wave Of Shops, But Industry Opportunities Still Exist.

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When the flames of war were brought to the market, the value and power of physical retailing were reassessed again.

According to the world clothing and shoe net, a new research report shows that a new round of shop closes is attacking the shopping malls and shopping centers in the United States. Since January 1st this year, the US retail industry has announced the closing of 2187 stores.

As some companies are filing for bankruptcy, more stores are expected to be closed.

Many retail peers believe that running a retail companies will encounter irreducible constraints and inevitable realities, but retail experts Doug Stephens's conclusion through detailed interviews and rigorous research has brought a glimmer of dawn to physical Retailing: "retail is not dead, absolutely not.

It's just peeling. "

That is to say, although the retail industry is facing a wave of closing stores, big industry opportunities still exist, but they are no longer the way of barbarism.

A new round of closing shop tides

Following the announcement of the closure of a number of stores by famous American chain corporation such as Messi and Sears, the retail brand in the United States once again opened up a closed door.

Shopping centres bear the brunt of the embarrassment of store vacancy.

Payless ShoeSource, the US footwear giant, announced that it would gradually shut down stores in the US and Puerto Rico in February 17th and reduce online retail businesses.

Earlier, a person familiar with the matter said that Payless plans to apply for bankruptcy protection later in February and close all 2300 stores in the United States.

Payless, founded in 1956, is a larger discount in the US.

Chain store.

In the collapse of the US retail industry in 2017, the company filed for bankruptcy for the first time and closed 400 stores in the United States.

After the creditors agreed to reduce their debts by half, Payless paid over $800 million in debt through a loan of $400 million, thus avoiding bankruptcy liquidation.

J.C.Penney, another US retail giant, recently closed many stores and announced recently that the company will reduce its home appliances and furniture products sector from February 28th, and may close some physical stores again.

In addition to reducing home appliances and furniture products, Penny may also close some physical stores.

Previously, Penny's department stores closed hundreds of stores, resulting in excessive inventories, resulting in pressure on profits.

To add to the shopping malls, Victorias Secret's parent company L Brands and Gap, a famous brand of women's underwear brand, have also heard the news of reducing business in Vitoria.

The latest Coresight Research report shows that the retail industry has closed 2187 stores since January 1st this year, an increase of 23% over the same period last year.

In 2018, the US retail industry announced the closing of 5524 stores, down 30% from a record 8139 in 2017.

David Simon, chief executive of Simon Property Group, the largest shopping center operator in the United States, expects more stores to shut down this year, Simon said.

He said that several retailers were on their watch list.

The retail sales figures released by the US Department of Commerce in December 2018 are far less than expected.

Data showed that in December last year, 11 sales in the 13 main retail categories of the United States declined, and retail sales fell by 1.2%, the biggest decline since September 2009.

Analysts believe that as the proportion of online shopping increases, market demand for retail stores will show a downward trend.

Compared with other countries, the number of physical stores in the US is still at an "excessive" level.

Closing shop tides is not a bad thing.

Chain corporation and the specialized clothing retailers are the industries that the traditional retail industry has shrunk.

However, not everyone will regard the store as bad news.

Fimons Brandon Famous, a senior retail executive at the commercial real estate company, said that the empty shop would give landlords the opportunity to rent, redecorate and reinvigorate the store.

In fact, many landlords are looking forward to reclaiming the right to operate the store.

In the United States, some shopping malls are slowly declining, while others are gradually emerging.

According to Coresight Research, a market research firm, since the beginning of this year, the US retail industry has announced 1411 new outlets.

Although the number only counteracts about 65% of the closing stores in the same period, Barbara Kahn, a marketing professor at Walton business school, says that although people are talking about the death of the retail business, there are still beautiful new stores open.

The emerging retail model is growing, and the past bad retail models are going to be eliminated.

Analysts say that from the perspective of market economy, it is a good thing for retailers to set off shop closes. If companies fail to go on, they should quit.

Because whether it is a shop or a shop, it can reflect the market demand, and is conducive to industrial upgrading and economic development.

Free access and economic vitality.

In other words, it is difficult for new businesses to emerge without bankruptcy.

Cohen, director of retail research at the Business School of Columbia University, said that 250 of the 1400 shopping malls in the United States were top or suburban shopping malls. These stores are gradually closing down, and some brands have even disappeared. Such shopping malls will be regarded as "zombie stores" by consumers.

Barbara Kahn pointed out that the future development trend of retail stores is to have more functions and pay attention to the experience of consumers, such as setting up restaurants, cinemas and even sharing office locations.

Unlike the physical retail that focuses on sales volume now, experiential retail industry regards itself as a real "all channel".

They are both media, as well as sales and design companies. They will use their physical shopping space to create an extraordinary experience for a range of products.

Nowadays, retail has entered the era of individuation and customization. Those shops with distinctive features, excellent products and reasonable prices can still survive and live better.

Barbara said that this year, those retail companies that will be able to work well in the new retail environment will get substantial profits.

Although Amazon has performed very well, it is only a part of the rapidly growing global e-commerce growth story.

Rachel Shekhtman, founder of innovative retail concept store STORY, told reporters that technology has completely changed the way people shop, but the retail industry has not done enough in the way of shopping under the reform line.

Retailers rarely quantify the experience in shopping space, let alone realisation these experiences.

Liquidation is what Sheikh Terman and his team are doing.

Simply put, the brand pays STORY and lets STORY tell the brand story.

In the book "retail without borders", Doug Stephens said Sheikh made all kinds of stories for Gillette, general electric, home depot and American Express.

These stories may be about love, travel, men and women, or other themes, to show and praise the products displayed in the store.

STORY is not only a large brand business, but also a grass-roots enterprise.

Sheikh Terman acknowledges that the concept of STORY does not apply to all markets, but she believes that today's brands have generally ignored an excellent opportunity to turn stores into media channels.

For customers, stores are fun, she said. For brands, stores provide back-end data and analysis, and make sure that the product and content are accepted.

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Doug Stephens analyzed Sheikh tman's media mode to the harsh traditional retail standards, compared the average sales per square foot of STORY and Messi department stores, because with the mode of "retail as the media", the sales per square foot of STORY was almost 12 times that of Messi's.

But Doug Stephens admits that the data he obtained is just an estimate, not science.

Last year, STORY was acquired by Messi department store.

The future of retail

People once blamed the "cold winter" of physical retailing as the crackdown of Amazon and other electronic commerce giants.

Indeed, all the big retailers in North America and Europe feel the impact of Amazon.

In the US, Amazon's share in the electricity business market is greater than that of WAL-MART, apple, Messi stores, home depot, best buy, good city, Nodes Tron, GAAP, Taghit, Williams - soo Norma, Karl department store and Sears holding company.

The charm of Amazon is that it is always innovating, unlike most retailers who consider only short-term products and services.

This year, the electricity supplier company will also continue to increase.

Mark Cohen predicts that although the specific categories may vary, consumers around the world will certainly accept this model.

Worldwide, this trend will continue to grow.

The traditional entity stores that do not know how to adapt to this trend will lose market share continuously.

When business giants are also interested in offline entities, when all the corners of the online and offline businesses are evolving into shopping stores, what exactly should the store be like in the future and what ideas should be used to smoothly adapt to the future?

Whether it is a pure electric business or an entity chain giant with thousands of stores, it is obvious that the future of the retail industry will be quite different from what it is now.

The concept of stores, consumer shopping, and even the business model of retail businesses will be radically changed in the next few decades or even years.

Doug Stephens pointed out that in the future, experience will become a product, and it is the sole source of sustained profits for many retailers.

Retailers who are good at creating memorable experiences will surely earn much more than they used to sell alone.

When many comments were made to justify the fact that a real retail companies would encounter irreducible constraints and inescapable reality, Amazon thought that these problems were nothing more than "old deceleration zones on the high speed road".

Amazon is not an obsolete rule in a hundred years of industry, but rather wants to pform the industry itself.

Doug Stephens's research found that no company tried to make clear the future retail direction, and there was no so-called retail rule.

That is to say, there is a significant common ground between the brands, retailers and technology companies that dare to challenge the most important problem facing consumers in the world before digitalization.

In the digitalized world, consumers have numerous choices, and the companies that rely on alternatives to compete for competitiveness will have a hard time.

Doug Stephens believes that retailers in the future will take the appropriate way to link shopping experiences in retail space better with the buying behaviors that these experiences promote.

In short, the role of future shopping space is no longer to pform consumers into buyers, but to turn them into life-long fans and advocates of the brand.

It is worth mentioning that Mark Cohen believes that there will be new trends in the era of data.

Data mining is like gold mining for retailers who want to use consumer preferences to subvert old patterns.

More interesting reports, please pay attention to the world clothing shoes and hats net.