Across the United States, stores are closing their doors due to the online shopping industry’s growth. Places like Amazon, Ebay, and other online shopping avenues have caused chain stores like Sears, JCPenney, Wet Seal, Bebe, Macy’s, The Limited, and others to close stores in the past year. RadioShack has also claimed bankruptcy twice in two years, and is closing more than 1,000 stores nationwide. This trend is expected to rise as online shopping takes over the nation.
Sears Holdings CEO, Eddie Lampert, has not been taking this step lightly. Closing 265 Kmart stores and over 40 Sears locations has been a huge deal for the company. They’ve been debating this step and considering how this is going to affect thousands of workers across the nation. However, closing stores and cutting costs is only part of the problem. Lampert feels that there may be no return for Sears locations, and in the future, they may all be closed down. Here are how many locations are owned by Sears Holdings Corporation.
As reflected by Wall Street, the revenue that Sears annually generates has been declining since their highest peak around 2006. Now, as Sears struggles to hang on to what revenue it still generates, they’re trying to sell more of their Craftsmen brand in order to stay afloat. While it has generated some revenue, it does not seem to be filling the financial gap of losing stores.
Surveys of online shopping show that 51 percent of Americans prefer online stores to in-person retail. This drastically grows annually, yet many small businesses do not have a website. Surveys also show that it does not matter what age group or generation you are from, more than 30 percent of each recent generation has shopped online or mostly shop online.
It is unlikely that this trend will cease as the modern era calls for “on-demand” items. What does this mean for the future? We will likely see less shopping malls, less of the big chain stores, and a dramatic in-person retail shopping decline. E-commerce is here to stay, and it is taking over the shopping industry.
Click here to see the first list of Sears and Kmart closings.
Click Here to see the list of Macy’s locations closing.
Click Here to see the list of JCPenney locations closing.