America has too many stores, too much inventory, and too few shoppers.
Macy’s, JC Penney, Sears, J. Crew and other major retailers have already announced that they will be closing stores because in the new retail landscape they cannot justify the return on these expensive fixed assets – and because customers no longer choose to spend their money in old-model retail stores.
The market capitalization of American department stores dropped nearly $80 Billion since 1999, according to Census data.
The cost of disruption is more than store closings and diminished market caps, it’s people and jobs. Macy’s and JC Penney, alone, will be closing over 200 stores and eliminating over 12,000 jobs.
You can not shrink your way to success. However, you can buy yourself more runway. Continue reading “Disruption is Inevitable, Essential & Painful”