The Wall Street Journal has a story this morning essentially saying that retailers that close stores in the hope that "by cutting expenses associated with physical locations, the chains can become more profitable and start growing sales again as customer purchases shift to their remaining locations and websites," may be deluding themselves.
The Journal writes, "Retailers that closed stores in recent years often continued to shrink, sometimes to the point of disappearing altogether, according to research from Citigroup Inc. and BMO Capital Markets.
You can read the story here.
- KC's View:
This isn't really surprising. Many of the retailers that have found themselves in trouble didn't have differentiated value propositions, compelling product and service offerings, cultural values that set them apart from the competition, or employees who bought into the company's mission.
It wasn't about the stores, or the threat of e-commerce (though the latter didn't help). It was about mediocre retailers with me-too offerings that did very little to communicate with or even understand their customer base.
One other thing that they generally had in common: they blamed Amazon for their troubles.