The birth of a new world of shopping.
With retail e-commerce sales topping $322.17 billion in the US in 2016 it’s no wonder traditional brick and mortar stores are in financial trouble.
Toys “R” Us are not alone
We are witnessing the woes of Toys ‘R’ Us with the closure of hundreds of stores affecting the jobs of thousands in the US. They are not alone. With the statistics indicating that the most popular category for online shopping for both men and women in the US is clothing and shoes, it is not surprising to hear that Abercrombie and Fitch, Aerosoles, American Apparel, Footlocker, Guess, JC Penney and The Children’s Place are among those closing stores as they restructure business.
A mall trip versus five minutes online?
With the statistics indicating that US retail shoppers spent just five minutes on a retail website visit via smartphone during the second quarter of 2017, it shows just how much more convenient it is to shop online.
This is only the tip of the proverbial iceberg – statistics indicate only 20% of e-commerce shoppers shop every week. What happens when the other 80% start shopping more regularly?
It certainly beats getting the kids dressed, schlepping them to the mall in the car, ensuring you have enough gas, buying all sorts of items you don’t want but they insist on – “I’m hungry,” then “I’m thirsty,” then “Just one little toy,” before you get home with the items you actually needed, and a much lighter wallet.
Retailers closing thousands of stores
While the figures are frightening it could be the start of a new way of operating for many companies, taking a lead from online retailer Amazon, which accounted for $46.66 billion in e-retail sales of physical goods in 2016.
Claire’s the jewelry retailer is set to close 92 stores before May 1, 2018, after filing for bankruptcy protection in March. And this is after closing 160 stores in 2016. The company blames a decrease in foot traffic in malls. Another victim of the trend is The Children’s Place, well known in shopping malls for their kids’ clothes, which is set to close hundreds of its stores. The stores will close by 2020 – so the move is a strategic one as it shifts to e-commerce.
This might be sad, but what does it mean for us as consumers? It means we can get unbelievable discounts on all the products right now. All stores that are closing have sales from 30-80%. Stores that are going out of business have sales up to 95%. They start at 10% and then go up every week. I have already noticed increases in my local ToysRUs and BabyRUs from 10% last week to 25-30% this week.
Check out our Exclusive list of stores closing and ho much you can save in each!
Joining the list of retailers closing stores as they restructure and readjust to a changing marketplace place are, and here is the list and how to take advantage of these!
BCBG Up to 70% off – https://www.bcbg.com/en/sale/deeper-markdowns/
CVS They have already closed stores so no closeout sales.
Bebe – Around 20% discounts on many items. – http://www.bebe.com/Sale/
Bon Ton Stores Inc. Score up to 80% off as their final clearance gets underway – https://www.bonton.com/sc1/clearance/
Guess – Up to 60% off – https://www.guess.eu/en/Catalog/Browse/outlet/#f_VisibleItems=12
Gymboree – http://www.gymboree.com/?adpos=1t1&creative=261834677700&device=c&matchtype=b&network=g&mrkgcl=906&mrkgadid=3071264514&rkg_id=h-c6ed10d122ba3f7e161ef3f6a1c47dec_t-1523256740&gclid=CjwKCAjw-6bWBRBiEiwA_K1ZDe-ObVz1ZxIJLAG7qqCRi08ah9Zr476n6WH69gfKxW1Q-K_tbdGfGhoCMCkQAvD_BwE
JC Penney – Discounts of 35% and more – https://www.jcpenney.com/g/closeout-closeouts/N-1aznsmxDglrmt8Z1z132a7
J Crew – Discounts online and in stores – https://factory.jcrew.com/r/sale
Macy’s – Up to 70% off on clearance and closeout sales – https://www.macys.com/shop/sale/clearance-closeout?id=54698
Michael Kors – The closeout sale at Macy’s is up to 70% off Michael Kors items – https://www.macys.com/shop/sale/clearance-closeout/Brand/Michael%20Kors?id=54698
Radio Shack – Up to 60 % off some items – https://www.radioshack.com/collections/clearance-sale
Sears/Kmart – This is a list of all stores closing and dates set for closure so you can go and find bargains near you – http://searsholdings.com/docs/010418-store-closing-list.pdf
The Children’s Place – Score 50 to 60% off on kids’ clothes – https://www.childrensplace.com/us/content/clearance
The Limited – Items from $9.99 upwards – https://www.thelimited.com/search/?isclearancelanding=true&pmid=LimitedClearancePricing
Toys “R” Us – Browse for deals – https://www.toysrus.com/products/clearance-toys.jsp
What Walmart did
A company that has made the shift from bricks and mortar to a successful marriage with e-commerce is Walmart, which brought in $12.7 billion during 2016 through their e-commerce sales of physical goods. This was in the US only, the global net sales for Walmart reached a whopping $481.32 billion, establishing it not only as the most financially successful brand but also making it one of the most valuable retail brands globally.
When malls fall silent as stores close and customers choose to sit in comfort at home ordering online, could malls become the new warehouse and dispatch centers? Will those who lose their jobs be involved in more creative fields like preparing online content, technical aspects like drone deliveries, warehouse management and dispatch?
The closures may seem apocalyptic but like the phoenix rising from the ashes, many of these struggling retailers will grow new online customer bases and will still retain flagship stores for an immersive retail experience. After all, shopping is a sensory experience – one likes to feel the textures of goods, to test various perfumes, experience that new car aroma, and to speak with an expert face to face. Kids love going to a toy store to be awed by the array of products, and have the opportunity to test some out – it’s a cherished childhood memory.
Shopping as we know it is set to change but will not disappear entirely as we swap from the rampant consumerism of previous decades to more thoughtful and sustainable shopping, either from our digital devices or at a physical store.