Amazon.com Is Pushing More and More Businesses into Bankruptcy
If you don’t change, you will become a dinosaur. That should be the lesson that retailers are learning from Amazon.com. Amazon.com is the big boy on the block and is stealing more and more market share as consumers gravitate to the ease of shopping on-line.
They are about to unseat Macy’s as the largest seller of clothing. They also have plans to greatly expand their online grocery store delivery. If they figure that one out, many grocery stores will be out of business. Further, they are already the #1 retailer of electronics.
So far this year, the number of retailers filing for Chapter 11 bankruptcy protection is headed toward its highest annual tally since the Great Recession. The number of retailers on Moody’s distressed list is also the highest since the Great Recession. Bear in mind, this is happening as the economy is growing. You are seeing a seismic shift in how people shop. This doesn’t even take into account the death spiral at Sears and JC Penny or the other retailers who are closing stores. Consider the following:
Payless is said to be filing bankruptcy very soon with plans to shut down up to 600 stores.
Macys is planning to shut down 168 stores this year
Foot locker plans to close 100 stores in 2017 after closing 41 stores at the end of 2016.
Kohls closed 16 stores in 2016 and is going to reduce square feet in 500 of the 1250 stores and lease that extra square feet to other tenants to reduce expenses
CVS is closing 70 stores not due to Amazon.com but do to the uncertainty of the affordable care act
Abercrombie and Fitch closed 54 stores last year and plans on closing 64 more this year
BCBG will close 118 stores in 2017. They are already under Chapter 11 bankruptcy
HHGreg is closing 3 distributions centers and 88 stores. They are also under chapter 11 bankruptcy.
Pier 1 plans to close 17 this year after closing 16 last year with plans to close a total of 100 stores by 2019
Staples closed 48 last year and plan on 77 stores this year.
Tiffany & Co. will close 6 stores this year.
The only way that most survive is to develop an online presence. Unfortunately, Amazon.com dominates that space and almost monopolizes the internet. Technology and change is a real thing. Businesses of all types need to pay attention.