The news for the retail industry has been discouraging since prior to last Christmas season. We read now that many established stores will be closing down this year. I read that it is estimated that over 40,000 retail stores will close this year. Now, some of them deserve to close as they were mismanaged and honestly I never understood how they even stayed around in the first place.
Also, remember when you read the doom and gloom news that stores like Steve & Barry’s and Mervyn’s have closed down through bankruptcy that perhaps this was a pre-meditated move. I recently read an article about the founder of Mervyn’s who sold the chain to an investment group thinking that they would carry on the name and promote the business. The article showed that the investors seemed more interested in the sum of its parts (real estate, real estate, real estate!) Same with Steve & Barry’s? Also saw National Wholesale Liquidators decided to liquidate themselves stating the tough economy hurt them. Hurt them? They sell CLOSEOUTS for goodness sake. The dollar and discounters are doing great when times get tough. Instead, I think they found a way out of their unsuccessful locations and a way to STIFF their suppliers. It was really interesting how some of the family members of the chain BOUGHT BACK their own stores in the bankruptcy auctions! They cherry-picked the profitable locations and cleared the liabilities to get a fresh start.
As a small business we’re not going to get the investor speculators to throw money at us. If we independents don’t step up and work harder and smarter we only end up going out of business. No fanfare. No front page in the Times or on Bloomberg’s news site. We simply have a clearance liquidation sale where people in the community who never bothered to stop into the store come in and feign sympathy as they buy for 75% off the dollar. My favorite line at these closing sales are “Oh, what a great store, it’s too bad.” This, coming from people who never bothered to stop in. And another local small store hits the dust. More community blight as downtown areas turn to ghost towns and property values dwindle down.
The small business is the backbone of our country and our economy. I can only hope that the new administration realizes this and steps up to assist our struggling businesses by emphasizing the need for communities to embrace their small businesses. These are your neighbors, sharing their love and concern for your community. The big box stores don’t care – they will take your money and put NOTHING back, sending their profits to their headquarters eons away from your hometown.
As small businesses we need to PROMOTE LOCAL SHOPPING with signs like “Support Your Local Merchants” and programs to encourage shoppers to stay local. We’re all in this together, as neighbors.
Well, that’s what Grinding My Gears this week!