Why big retailers are shuttering stores

[CHR]

From CNN Money - Why big retailers are shuttering stores

Gives lots of food for thought about the future.

Instead of talking about their growth plans for 2006, many big-name retailers instead are announcing store closings.

Meanwhile, mid-tier department stores are going to shrink, he said, as their customer base migrates to either high-end stores like Saks and Nordstrom (Research), or, at the other end of the spectrum, to value-priced chains like Wal-Mart (Research) or Target (Research).

Sounds like the retailers with strong market segment identity are faring better than the companies in the 'muddy middle'. I believe the same can be said for many florist operations.

"We're increasingly seeing the strong getting stronger and the weaker players getting left behind," Wissmann said.

A related discussion at Webmaster World hits on many points with respect to poor quality and service at local B&M companies. (Note: You will have to register to read the thread.) One post sums it up for me:

If your retail business model is,
1) Buy inventory.
2) Display inventory in store.
3) Wait for people to come in and buy inventory.
you'll likely be under a lot of pressure in coming years.

Hope you find this information of interest.

 

[BOSS]

I find it very interesting!!

It leads to my current direction and to what Da Daz and others have preached over the last many months.

Pick a market and go for it, don;t try to be all things to all people, I just happened to choose the top tier....