The Business Trendsetter Podcast

Business Trendsetter Pocast - Why Retailers Keep Failing – And Why It Matters To You

Episode Summary

Retail has been "overstored" for decades. Why the decline in retail matters.

Episode Notes

Last week Family Dollar/Dollar Tree revealed it was filing for bankruptcy and closing approximately 1,000 stores.  For most of us, these announcements are so common we don’t even notice any longer.  Last year 4,600 retail locations closed in the USA. CVS, Rite Aid and Walgreens closed 800 stores. 

This podcast explains how the US became so “overstored.” Something that was clear a decade ago. Those who were paying attention were smart enough to avoid investing in traditional retail – and avoid investing in retail real estate. Others who saw this coming were smart enough to adjust their leases to take advantage of falling prices.  Going forward there are lots of opportunities being created for non-retailers as this empty space goes looking for new uses.

Additionally, this podcast explains how you compete if you are a retailer. And it’s not as simple as “go online.” Using the IKEA case study we explain that it is possible to grow even in bad marketplaces, but you have to be very clear about your Value Proposition and targeted on customers with poorly met or unmet needs.

Thinking points:

• Do you include trends outside your industry in your scenario planning, looking for new ways to grow and lower costs?
• Do you alter your resources (your investments, people, etc)  in order to leverage trends going forward?
• Do you use trends to create new Value Delivery Systems that can boost revenues?
• Are you clear on your Value Proposition and very aware of where customer needs are over-meet, poorly met and unmet?