Major retailers continue to downsize as a result of poor earnings, which could lead to the elimination of thousands of store locations. Most experts agree that much of the problems experienced by retailers can be attributed to Amazon’s success, with annual sales approaching $100 billion. Best Buy, Office Depot, RadioShack, Sears and Staples are among the major companies that have already announced the planned closing of multiple locations.
“Office Depot Inc. repeated it would shutter about 400 locations now that its merger with OfficeMax is complete,” reports Yahoo, while Staples also announced it would shut down 140 locations. RadioShack planned on closing 1,100 stores, though lenders forced it to close about 200 instead.
Despite Amazon’s success, “brick-and-mortar retailers may have damaged themselves just as much,” explains Yahoo. “Staples, OfficeMax and Office Depot opened thousands of stores over several decades. As they pushed for growth, those numbers grew higher and higher. These three were not the only ones in the office supply market. Walmart’s Sam’s Club and Costco Wholesale Corp. both took significant market share as well. Even without Amazon, the competition simply may have been too much.”
The competition in consumer electronics has increased as well with the reduced cost of the process of making these products.
Other retail stores, including Gap and Abercrombie & Fitch, have also hit similar obstacles and may need to reconsider its store numbers.
“The number of stores that major retailers will close this year may stretch further into the thousands, as plans for many are already in place,” notes the article.