Friday, October 21, 2022

"25 Retailers Are Dying Right In Front Of Our Eyes"

Full screen recommended.
"25 Retailers Are Dying Right In Front Of Our Eyes"
by Epic Economist

"Even the most loved, the most popular, and some of the biggest store chains in America aren't immune to the avalanche that is bringing countless retailers to the ground in the past few years. The decay of the retail industry is one of the most devastating events the U.S. economy has been facing in the past decade. Each store closure means that thousands of jobs can disappear overnight and also suggest that even the nation's most well-established companies can literally die before our eyes from one moment to the other.

For example, Fry’s Electronics is amongst the ones saying their last goodbyes. After almost 36 years in business, Fry’s Electronics tried everything to survive the retail carnage and even launched an online store. The company was founded in Silicon Valley in 1985 and offered software, hardware and electronics, toys, cosmetics, and home appliances. After a rocky couple of years, changes in the retail industry and the challenges posed by supply chain disruptions, Fry’s Electronics decided to shut down its online store completely, and it is now closing its remaining 31 stores across nine states.

Similarly, Family Video stores are seeing their last days. Last year, it had already closed almost half of its stores, and in July 2022, it announced that it would shut down all of its remaining locations. The chain noted in a press release that it couldn’t compete with the convenience streaming services provided, especially at a time when the cost of living is going through the roof and it’s become harder to justify getting in the car to pick up a couple of Blu-Rays - not to mention the drive back. “While we have faced digital competition from Netflix and others for years, nothing has been as devastating to our business as the ongoing economic downturn,” the CEO of the company stated. Now, Family Video is in the process of closing its last 125 open locations around the country.

The downfall of all of these celebrated brands has one underlying common reason: an exhausted economy that is failing to support the growth of its businesses and give them the conditions to thrive. At this point, U.S. consumers are extremely overwhelmed with the highest prices they've seen in decades. Their wages cannot support consumption. In fact, people can barely afford to pay for their most basic necessities, which means that the pain these companies have felt so far is merely a fraction of what's coming over the next few quarters. Put it simply, as our purchasing power collapses, so do our businesses. And retailers' mass extiction has only just begun.

The pace at which everything is taking place is truly alarming, and the truth is that no one can tell with 100% certainty whether or not the next time we visit our local store is going to be the last."

No comments:

Post a Comment