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JcPenney is an example of a big retail store that is having to close more and more stores due to an increase in online shopping. Shoppers can now go online and have their items shipped right to their front door. As opposed to wasting gas to go to a store that might not even be close to them and have the item they are looking for. Online shopping offers a bigger selection of items because, the items are coming directly from warehouse so customers are no longer limited by only what a certain store's selection is. They are also guaranteed to find their size, because they are ordering it and not having to choose from what is left over after other shoppers. Working in retail I see this problem occur very often.
According to Business Insider JcPenney is forecasting to close 300 to 350 stores in 2013. This will create many job losses. Jobs from the highest ranking senior manager to the lowest ranking sales associate could be lost. Their current number of US stores is 1,100. Their on year stock performance was a -53.6%, which is the measure of the returns of shares over the past year. If JcPenney is wanting to continue their success in their stores then they are going to have to implement new stratageis. M. Gilliam
Source: http://www.businessinsider.com/8-retailers-closing-the-most-stores-2013-2013-1#jcpenney-4
I am still a big fan of the brick and mortar store or at least when clothing or shoes is involved. Yes i can go try on shoes at a store and know what my size is. But, each shoe is made differently. So, unless I am trying on exact shoe and size then I buy from physical store. Also, I am impatient so I want to buy and use right away. It is also easier for refunds and returns to be at a physical store.
ReplyDeleteIt will be interesting to see what happens to JCPenney. They are trying desperately to change their image but are still having several problems. It may be too late.
ReplyDeleteOne thing that I find interesting is that Belk seems to be doing well and their website is below par. When I registered for wedding gifts online back in 2010 their website was really hard to use. I would think that this would be a huge problem for them. Registries are a good way to bring in new customers. I will say that since that time they have done some much needed work to their website.