Are Bricks and Mortar Stores Going Away?
We constantly hear nowadays about how bricks and mortar stores are dying — the retail apocalypse, some call it.
But is it true?
Let’s look at the recent news:
Store Closures are on the Rise
As of May 29, 2019, more than 7,150 store closures had been announced by U.S. retailers. This is compared to 5,524 closures in all of 2018.
On the chopping block are Dressbarn, Topshop, Party City, Fred’s, Pier 1 Imports, CVS, Gap Inc., Signet Jewelers Limited, and Bed Bath & Beyond.
Earlier in 2019, Payless ShoeSource filed for Chapter 11 bankruptcy proceedings and shut down 2,500 store locations across North America and its eCommerce operations, too.
But Store Openings are Increasing, Too
As of May 29, 2019, there had been 2,726 store opening announcements by U.S. retailers, compared to 3,083 total store openings during 2018.
We’ve written recently about Saje Natural Wellness and how quickly it has grown. In Canada, stores like Roots, Indigo, and more are planning multi-year expansions.
Some Shoppers Still Prefer In-Store Experience
We recently shared the PwC Canada 2019 Canadian Consumer Insights Survey that said the majority of grocery shoppers actually prefer shopping in-store.
While eCommerce is growing, in Canada at least many shoppers still prefer the trip to the store.
Retail Apocalypse – or Retail Revolution?
Interestingly, Bed Bath & Beyond, which announced that it will be closing a minimum of 40 stores, is planning to open 15 new Next General Lab locations.
And we can’t forget Amazon, which recently launched the bricks-and-mortar (albeit cashierless) Amazon Go brand. Already, Amazon is planning on building as many as 3,000 more stores by 2021.
Stories like this make us wonder if it is really is a retail apocalypse – or is it a retail revolution?
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