Gone are the days when people visit different stores to buy different products. Now everything has come under a roof. No, I am not talking about superstores. Superstore has become an old concept now. Now people like to shop everything online without visiting stores. For the changing buying pattern of the customers, the retailers are rushing to close their stores. They are vacating their physical store where they used to assemble selected inventories for the customers. Those who would like to buy products visiting store seeing the products physically are now switched to their mobile phone and PC to purchase products.
So, the reason for closing off the retail shop is not the failure to provide the right products to the customers. But the change in the buying pattern of the customers. Customers want comfort while shopping for different things. And for the advancement of technology, it is now possible to ensure the comfort level of the customers and send the products to their doorsteps without any hassle. In this article, I am going to discuss –
Few reasons why the retail shops are closing –
Online advertisement
Social media marketing is not a new concept now, especially for a start-up business. Nowadays many businesses are establishing based on online. They don’t have even any physical stores. They are selling their products directly to the customers and customers are also accepting it in a positive manner. It has become a trend, and this is making everything complicated and challenging for the established business and retail stores. As no everything is available online, people now don’t like to go to the high street to buy things spending their valuable time and energy. They just place an order through online and get everything at their doorstep within few minutes and hours.
Another good reason for buying products from online is they can make the price comparison easily from different online shops. With the reviews and products specification, they can also know which the better thing is and why.
Increasing the operating cost
The cost of everything is rising rapidly. From the space rent to the maintenance and staff remuneration, everything is getting higher day by day. Most of the retailers are struggling matching up the expenses with the profit. As traditional retailers need to maintain a lot of things for successfully running the retail store, it is becoming quite difficult to compete with the online seller, who does have a very limited maintenance cost. For this reason, sometimes it is also become quite difficult to keep the price at a moderate level like the online seller. So, the rise of the cost is also a great reason why retailers are closing off their stores.
Bad management
Managing a store properly is a great hassle. If you don’t have a skilled and qualified store manager, you will eventually lose your reputation and can’t fulfill the expectation of the customers. If a customer had a bad experience in your store, he/she would ever come back to your store. Retailers who have more than one shops in different locations struggling managing reputation recently. There are only a few skilled executives and store managers who are dedicated to their work and want to increase sell-through providing better services to their customers. So, the bad management and storefront services are creating pressure to the business owners, and they want to shut down their store for this.
So, these are some important and strong reasons why retailers are closing off their store recently.
