Closing stores won’t prevent retail collapse



Rolling Acres Mall in
Ak


Nicholas
Eckhart



Retailers are
closing thousands of stores
following years of declines in
sales and shopper traffic. 

While the closures could cripple hundreds of shopping
malls, many analysts believe that shrinking store footprints
is necessary to restore health to many of today’s
ailing retailers. 

But according to one former retail executive, closing stores
isn’t a path to profitability. Instead, it’s a warning
signal that a retailer is in an irreversible death
spiral. 

In a column for
Fortune
, Steven Dennis, a former executive at Neiman Marcus
and Sears, says “store closings are hardly the panacea that
Wall Street seems to believe.”

“The notion that a brand can
shrink its way to prosperity
 is
typically horribly misguided,” he writes. “S

how me a
retailer that is closing a lot of stores and you’ve likely shown
me a retailer that doesn’t have too many stores, but a retail
brand that is no longer relevant enough for the stores it
has.”


Mike
Nudelman

Instead of wiping out hundreds of stores, retailers should
fix the underlying problems ailing their businesses, he
argues. 


“The danger of closing too
many stores is increasingly real,” he writes. “The danger that
struggling retailers will continue to appease Wall Street’s
thirst for taking an ax to store counts instead of working on the
underlying

fault in their stores
seems, sadly,
clear and present.”

The underlying problem for some
retailers has to do, in part, with a lack of investment in their
exsiting physical stores. 



A Kmart store entrance in
Tinley Park, Illinois.

Gary
Hayslett


For example, Sears and
Kmart 
shoppers
and
store employees
 say the stores…

Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *