Recent spate of store closings could be new norm
Online shopping trends and consumers’ shift from brick-and-mortar stores could cause more pain for big retailers.
The Wall Street Journal reported that closures by Macy’s, Sears and others are symbolic of a larger shift away from old-line retail.
On Wednesday, Sears Holdings Inc. announced that it will close 150 unprofitable stores, including a Kmart location in Bangor and a Sears store in Augusta, while Macy’s said it will close 68 stores, including a Bangor location.
Macy’s and Kohl’s reported disappointing holiday sales.
Consumers have been trained to expect discounts and they’re happy to shift loyalties to Amazon and other online services.
“The continuing transition to e-commerce and away from physical stores will remain a source of pain for the entire industry for the foreseeable future,” the Journal reported. “Closures mean ceding sales to competitors and much of the savings from doing so need to be plowed back into improving online operations to compete with the likes of Amazon.com.”
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