Retail is dead. Heard that phrase before? For the last decade we have watched as digital companies like Amazon & Netflix received much of the credit, for putting brands like Borders and Blockbuster out to pasture.
Poor stock performances and gloomy headlines about the death of retail only fuel reports about the demise of brick & mortar stores. For many retail brands like Nordstrom and Target, missing on quarterly earning reports can drive a stock down 10% or more. It has become such a widely accepted notion that brick & mortar retail is on life support that even when they beat earnings, but not by as much as analysts predict, the stocks can still decline
When you look at the actual brands that are struggling there is far more to the equation beyond price & convenience impact of digital. Over expansion, lack of innovation and supply chain mismanagement are all contributing factors to retail struggles.
So, is retail dead, dying or merely changing? And if it’s just changing, where are we headed?