Our opinion of 2017 wave of bankruptcies of US retailer brand.
Retailers close stores or even go bankrupt for different reasons. To sum up, there are several..
Retail store traffic are affected by e-commerce online store. On fashion & accessories industry, more and more people going to retail store are only for window shopping, after they experience the product they will just go home and go online to place order, and this are pushing a lots of retail store to build their online sales channel.
Can't follow up the consumer's tastes change. For example, like Warby parker, who has been known as a fast fashion pioneer are also accused of being contributory old and lake of innovative, losing young customers.But projects with loyal users, such as the one dollar club, were born as subcultures.
Shortage of capital, deep in debt. Whether own property or leasing, retail stores all needs to keep balance in the form of cash flow and expansion plans, once the product unsalable, pressure of inventory and will further influence the cash flow.
Secondly, due to reasons such as the stability of the consumer goods industry, capital need to seek out and the excess return or LBO brought base by the pressure of high interest payments to pay, which will be conducted to the entity and distortion the management, the pursuit of short-term returns, may cause more haste. Such as on 2011 privatization LBO J.Crew are buried a huge debt trouble under the future.
Anyway, all kinds of retail store are innovation around the "traffic", which what Autron needs to do is create and follow the market goes, customize retail's tastes.