More retailers file for bankruptcy twice as they struggle with rising debt, pressure from Amazon

[redqueen]

...
It's a scenario that's getting more common for traditional retailers as they find themselves under pressure from a sea change in where and how people are shopping. Retailers like Barneys and RadioShack have found themselves on the brink twice — going through a bankruptcy filing once, emerging, and then heading back to court, again. In cases where the company files specifically for Chapter 11 twice, the scenario is referred to as Chapter 22.
...
Overall, the number of retail bankruptcies is rising. There were 22 retail bankruptcies in 2019, compared with 17 in 2018, according to a tracking by CB Insights. The firm has tracked over 80 retail bankruptcies dating back to 2015.

Part of the problem is that it is only becoming more difficult to remain relevant as a retailer in an age where Amazon is dominating more categories online as consumers shop from their couches instead of in stores. Many two-time bankruptcy offenders are names that relied too heavily on foot traffic in malls, like teen retailer Wet Seal and shoe store chain Payless.

For such companies, filing for bankruptcy is a lever pulled to break leases on stores when they have too much real estate and need to close some shops.
...
https://www.cnbc.com/amp/2020/02/01/why-many-retail-chains-like-fairway-have-filed-for-bankruptcy-twice.html

[napi21]

1. They have to give the consumer a reason togo to their store! I'm a big onine shopper because

I'm in a wheelchair and can't drive anymore. I do a lot of shopping on Amazon, but I also buy things at other retailers like Kohl's, Walmart, Walgreens, etc. I always compare prices and sometime take advantage of promotions. I use free shipping at Walmart (their response to Amazon Prime) Once in a while I go to a B&M store. Almost always, it's because what I need is an item that's not available online, either online requires that I purchase a larger qty.. than I need, the item is available online, or on rare occasions is much cheaper to buy in store.

I don't have answers for the B&M stores, but I KNOW they have to give a reason for people to go there.

[redqueen]

2. Yes, well I don't think they'll ever recover 100%

They have to adapt. These changes aren't temporary.
My main concern is for the employees who are working at all the locations which will be closing.

[Wellstone ruled]

3. If you have the LOCATION,and you can not make it go,

well,time to look into the mirror and either change your management style and focus or lock the door.

It is all about Customer Service and Training your Employees to be focused on customers. But,you need Product mix and Inventory as well as price point. Nothing more aggravating than a Retailer not having a decent Selection or size and Color options.

All about crappy management in those cases. Oh we can order it and have it for you next week. Wow,you lost that sale.

[wishstar]

4. Earthfare Supermarkets announced today they're closing all 53 stores

They were the only competitor to Whole Foods in the organic food market in many towns in South and Midwest. Amazon takeover of Whole Foods has contributed to the demise of several other "health food" groceries. I hate to see them close in my area as they often had better deals on better quality merchandise than I could find at Whole Foods.

[redqueen]

5. Wow that's really sad. :(

Between Amazon and Walmart there aren't many other retailers that can compete.

[napi21]

6. For ealthy foods, have you tried Aldis? I buy a lot of my produce therem and they have a

section of organic produce AND they've added a lot of natural foods to other sections of their stores. They're available under the Simply Nature label.

[TexasBushwhacker]

13. I really like Sprouts, but I know they aren't everywhere n/t

[mercuryblues]

7. I wanted to buy my sis in law a bathrobe for her birthday

She raved over the one I have in the guest room when she visited us. I went to Penny's, Belk's, Khols, Burlington coat factory, and Target. Most all I found were pawed over ratty looking pieces of crap. The ones that weren't torn up were ugly. And I mean ugly.

Came home after 3 hrs, went on Amazon and had a robe almost like the one she liked in 3 minutes.

I tried going to a box store. Next time I probably won't. Why waste a 1/4tank of gas?

[redqueen]

8. Yep. This is why fighting against the takeover by technology

of vast swaths of the marketplace is futile.

This is just another aspect of the latest industrial revolution, and it is going to prove so much more disruptive than most expect.

[Blue_true]

10. I agree with every word that you wrote.

The biggest advantage of Amazon is that it can harvest the power of small companies that offer unique products and it's site is pretty user friendly.
I needed to buy some food picks and wanted wooden ones. I couldn't find what I needed in local stores. I could find picks, but they were too flimsy for me to put strawberries and dried pineapple then coat with chocolate. I went onto Amazon and had three good choices within 5 minutes. The purchase was at my home two days later. I recently bought organic, non GMO, non palm oil castile soap via Amazon, immediately had four choices, got what I purchase in two days.

When B&M retailers realize that they need to focus on products that they were excellent at providing in their infancy, they will stop the bleeding. There are some areas where they can outmanuever Amazon, but that want happen with them trying to sell everything from toothbrushes to car tires and not doing any of it well.

[mercuryblues]

11. It will be

Funny thing is, I wasn't looking for one like mine. I knew what she liked about it and was looking at those styles. Page 2 I saw one with the same fabric content. click-click.

I was even able to ship it to my Mom in Law. She'll have it wrapped and ready for me to give to my sis, when I get there - on her birthday. Since I was shipping to her anyway, I bought something for her as a thank-you. Pickled watermelon rinds. eew. She was telling me a while back that her Mom made them and how she missed 'em. She wished stores would sell those. I Amazoned it and they have been sitting in my cart waiting for me to purchase.

Box stores can not do that. Hell, they couldn't even have a decent bathrobe.

[ck4829]

9. Why are they filing for bankruptcy, don't they know we have a "strong economy"?

[dustyscamp]

12. I think retailers should make a push that their products are superior to those found online

It's very easy to buy anything online, but a lot of the times the quality isn't the best and isn't thoroughly inspected by anyone. The Counterfeiting industry is pretty big and they have expanded their operations to online sales. Do you really know if the product you just bought is the real deal? If it's fake you have to go through all the hassle of contacting Amazon or whoever and get it sorted. With local shops you won't need to worry much because they would screen the items they sell making sure it isn't broken and assuring you it's real. If they are not doing this already they should get on it. Other than annual sales the retailers could do more promos like the ones bubble tea stores do where you get a stamp card or they could sell store exclusive merchandise that people would want.

[Ms. Toad]

14. Don't think it's related to Amazon - but my daughter go the call at 9:00 AM this morning

that her job of 5 years will be gone no later than 2/29. (EarthFare)

WSJ published an article at 8:45 AM announcing all of the employees had been told. Not - since my daughter is an assistant manager there, she is among the first (not last) to be called. So employees who read the WSJ (I'm sure not many) would have learned of their termination by newspaper.

Since she's a $200,000 a year medical marvel, we're going to be scrambling for health care. Fortunately, she had already started working. She's found a couple of places that she "only" has to wait for 2 months - assuming she can get a full time job there. Let's see 200,000 / 12 = 16,667. Yup - COBRA will be worth it since she has a treatment costing more than that scheduled for 3/7 . . .