Four major chains may soon be closing or need a lifeline in 2013. Major retail chains Best Buy, Sears Holdings Corp., Radio Shack, and J.C. Penney may shut down in 2013 as each company has posted HUGE losses in the past couple years and the downward slope in sales in rapidly increasing. Each company has been losing revenue and sales in the past year, so many are speculating that the end is approaching. Mainly, J.C. Penney whom went through a major overhaul this past year to update their public image as many Americans see the store as a store for bargain deals and low-priced old-school designer names. Penney even hired legendary fashion consultant Nick Wooster as the Vice President of Brand, Design, and Trend for Menswear. Radio Shack Corp. sold more of these low-margin devices but is making less money than it did retailing old standards like cameras and computers. Sears Holdings Corp.’s sales and profits continue to slide as the store has been selling it’s assets. The company lost $500 million in its most recent quarter. Best Buy is still the leading retailer in consumer-electronic goods in America but sales fell more than 4% for the first nine months of 2012, after slipping 2.1% in all of 2011. Tragic.
Welp, it’s obvious that people are trying to save gas money by ordering off the Internet, where there are better prices and more opportunities for sales. I use to work at K-Mart (owned by Sears Holding Company) from 2010 to 2011 and I remember the store manager told me that the store was due for an update TEN years prior. The store looked like it was stuck in the 80’s in terms of store design. The registers were disgusting as they were kept together with masking and Scotch tape. They would always freeze causing a back-up in the line as there was only three cashiers working (max) because they didn’t have the money to hire a good amount of cashiers. Sloppy. I HATED working there!
[Courtesy of Wall Street Journal]