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The first quarter of this year has seen record number of retailers filing for bankruptcy in the USA. At ten, is the largest number since 2009 when eighteen retailers did so. US retailers have for decades suffered from a tendency to overstore and be unfocused on target markets. Add to that online shopping has created added trouble. At Payless Shoes Source to cite an example, the mantra has been BOGO or Buy One Get One for far too long, losing its competitive edge over time. A lot of its stores aren’t productive enough. Even fashion giant Ralph Lauren is downsizing its operations at places. Even iconic brands are facing retrenchment. Business consulting provided by a marketing professor from Wharton tells us that a lot of malls will get adversely affected. The top tier ones will face less erosion as people will continue to visit them due to multiple benefits. But second and third tier malls will see business erosion due to the departures of retailers such as Macy’s or J.C. Penney. As people do not like visiting empty malls or dining out at empty restaurants, so such places will face major survival challenges.

Source:http://knowledge.wharton.upenn.edu/article/are-retailers-facing-a-coming-tsunami/

Uploaded Date:02/06/2017

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