Macy's closing 68 stores in 2017 along with Abercrombie & Fitch with 30 stores. Foot Locker is said to be closing 110 stores and Banana Republic will be closing 200 stores this year in 2018. The world of retail is changing, and people are freaking out because it seems that these stores have failed.
The only thing that ticks me off is that there are headlines saying that companies are blaming millennials. Applebee's was the first that I saw in conjunction to headlines pertaining millennials are to blame, closing 135+ stores. Just last week, Toys R Us has announced they are officially shutting down their stores as well, in an amount that exceeds over 700 stores. And they blamed millennials for not having [enough] kids sooner.
No, millennials are not to blame. You did not adapt to the changing of the online marketplace. Don't blame Amazon either. Blame yourself for not keeping up with the times, and catering to the new era of everything being convenient for the buyer. You should have curated a new platform for online ordering in competition with Amazon and the other online retailers.
You also had the most ridiculous prices, in my opinion. Sure, there were many sales I found during the holidays for my little brother, but that's the only time you really made any sales. Think about throughout the whole year, where toys are gifted as birthday presents and other major holidays that could have easily been marketed to our crazy world of consumerism for kids. You have so much competition with other retailers, and lacking in your online marketplace puts you under leverage of other retailers already.
Another thing, sure you can blame millennials for being the top creators and pushers of social media, but it has benefit people of all ages. We were the ones to push it and make it a thing, but everyone uses it. So why weren't you on social media enough? Like with Progressive insurance... I was impressed when I saw Flow on Instagram with media that fit my iPhone screen and was respectful of the platform by "speaking to us" on our phones.
With the downfall of cable TV, you should have realized that there were other routes to channel your business. Kids TV stations were the only platforms where you showcased new toys on commercials. Did you know, that kids watch YouTube videos of other kids opening toys is the new thing? They know how to surf YouTube before tying their shoes now.
"Millennials not having kids sooner are to blame". That's hilarious. Kids these days are following their parent's footsteps of thinking "less is better". My generation has seen first hand the changing trends of the growth of these retail stores that are now plummeting, to enjoying and trying to be minimalistic as we get older.
You have the market where luxury items are wanted because it's quality over quantity, but also the same market is after cheap clothing because trends are always changing and clothes can be donated without regret because they didn't pay too much for them. I'm not surprised at all the retail stores that are closing down because they are overpriced and the quality does not sell secondhand well. These days, people would rather spend their money on experiences instead of things they feel ripped off on.
My prediction is that Forever21, Target, and other low-end retailers will be the top clothing retailer for swimwear and trendy clothing while other retailers struggle with pushing out as many promotions and sales to gain traffic through their door. Online shops of these retailers will have more sales and promotions because they are in competition with major online marketplaces like Amazon to switch tabs on back and forth. I also feel like we will see a downfall in more franchise restaurants because people are beginning to stray to authentic food as a healthier option. Sorry Toys R Us, you were differentiated among these retail stores but you have failed on your own.
It's time to realize things are changing for the better of the consumer.