Retail bankruptcy watch list: Introduction
Metro Vancouver’s high rental fees and salaries for skilled retail staff aided the demise of the 102-year-old shoe-store chain Ingledew’s. Ingledew’s is the latest retailer in Canada to become bankrupt. One of the most compelling of all the retail bankruptcy issues today, is the constant customer practice of identifying the product in bricks-and-mortar shops and then after buying online from other stores. There are others on the retail bankruptcy watch list for the same reasons.
Retail bankruptcy watch list: And what about the future of our malls?
“I worry that the shopping mall that we understand so well today, in as several as five to 10 years, will be totally different,” he informed Business in Vancouver. He predicts a slew of stores having a hard time and landlords clambering to find new methods to attract consumers.
Ingledew stated that costs and debt rose because of:
- the amount of money it took to open these gorgeous new shops;
- the lease rates paid to mall property owners for rent; and,
- the wages paid to get and retain excellent people to be knowledgeable, treat the consumer well and properly represent the company.
He further stated that the costs were far overtaking any type of gains being seen in sales in stores.
These pressures, particularly the fad of buyers dealing with physical shops as display rooms, has Ingledew being afraid that there will be an earthquake of adjustment can be found in the retail industry in the next years.
Retail bankruptcy watch list: It is a North American issue
North American merchants are shutting greater than 3,600 stores this year to stanch losses. Retailers are also declaring bankruptcy at a staggering rate. Wal-Mart is now consuming their shed market share, according to Moody’s expert Charlie O’Shea.
He agreed with Ingledew, nonetheless, that retail is quickly developing and stated the ultra-competitive shoe retail industry specifically is undertaking significant change.
Oxford Properties, for instance, wishes to increase the measure of area dedicated to food and drink sales in its shopping centers– to around 20% from 9%. Other shopping centers are increasingly having art exhibitions, Lego demos and various other demonstrations and events to draw consumers.
Retail bankruptcy watch list: The trending in the USA
In the United States, there are frustrating earnings reports from JC Penney, Macy’s, as well as Nordstrom, against a backdrop of overall distress in the retail market marked by sliding sales and traffic. Retailers are shutting shops and companies filing for Chapter 11 in 2017 in the first 4 months of 2017 are at a rate not seen since the last recession.
Retail bankruptcy watch list: Wal-Mart is investing online
However, it is not just Amazon that is the beneficiary of the distress in the brick and mortar retail environment. There is one major traditional retailer that is crushing it. Wal-Mart recently reported that e-commerce sales rose by 63% in its latest quarter, compared to 29% growth the previous quarter. The firm stated most of these sales were natural via Wal*Mart.com.
“We delivered a solid first quarter and we’re encouraged by the start to the year,” WalMart CEO Doug McMillon said. “We’re moving faster to combine our digital and physical assets to make shopping simple and easy for customers. Our plan is gaining traction.”
Wal-Mart’s $3 billion procurement of the online merchant Jet.com additionally aided the firm boost shopping sales. Wal-Mart also got the Shoes.com domain and is utilizing it to advertise shoes from its Shoebuy.com Inc. subsidiary, which Wal-Mart got in January, simply a few weeks before Shoes.com ceased operating.
Retail bankruptcy watch list: Walmart’s growth is not just online
But Wal-Mart’s development isn’t all online. The firm stated sales at US stores open at the very least for a year, or same-store sales, grew by 1.4%, defeating analyst expectations of 1.3% and also marking the 10th consecutive quarter of same-store sales growth.
Retail bankruptcy watch list: What does your future look like?
Are you unhappy about the direction your debts are taking you? Is shopping putting you into financial ruin? Do you or your company not have enough cash flow to make it through another season? Is the stress of too much debt affecting your health and life?
Call us now for a free consultation. The Ira Smith Team can help you sort through all the issues. We will create a plan to get you back on the road to financial health. Many times, we can avoid bankruptcy, using one of the various bankruptcy alternatives. Call us today so we can help you get your life back, Starting Over, Starting Now.