Journal of
Corporate
Renewal
October
2014
What does this mean for retailers
and retail bankruptcies? Despite the
e-commerce boom, brick and mortar
stores are still expected to account for
approximately 85 percent of U.S. retail
sales in 2025, according to Forrester
Research data and McKinsey analyses.
However, the mix of retail stores is
beginning to change. According to one
retail report, for example, more than half
of all Saks stores are now outlets, and
13 of the brand’s 15 planned stores for
the next two years will be outlet stores
as well. Nordstrom planned to add 27
more Nordstrom Rack stores in 2014
versus just three of its full-line stores. 5
U.S. retailers continue to manage the
bleeding by closing nonperforming
stores and upgrading digital media
and marketing, but the necessary
contraction seen at a macroeconomic
level, in conjunction with a tightening
of the credit markets, is forcing a day
of reckoning for many of these players.
In January, Dots LLC, a 400-store
clothing chain for young women, filed
for bankruptcy protection, blaming
prior management, the economy, and
pricey leases, while Kid Brands Inc.,
maker of infant bedding, furniture, and Journal of
Corporate
