In these hard economic times it should come as no surprise that many stores are having to close chains across the country. Although, according to an article from dailyfinance.com, it was a bit surprising to see some of the stores are facing possible downsizing, mainly because they are very popular chains. The list included shops such as: Hot Topic, Barnes and Noble, JC Penny, GameStop, Zales Jewelers, and Abercrombie and Fitch. It makes me worried in a way that these big name stores are having trouble keeping their head above water, because they are established and well recognized retailers, therefore I would have assumed that they would be doing better than other shops. However, I suppose this is a good example of how nobody is immune from this economic recession, even a franchise as well known as Abercrombie and Fitch. It’s not like these stores are completely going out of business, but they’ll still have to make significant store cuts that will severely affect their profits.
Every time I go online to find an article to blog about I just find one piece of bad news after another, and this article is no exception. With these big names having such trouble, it would seem that other stores that aren’t as popular, yet still well known, are going to have a fair share of their own problems. It’s gotten to a point where I read these articles and then just ask myself, when are things finally going to turn back around? So if you’re at your local mall in the near future and can’t seem to find one of the above stores, it’s probably because it has since closed down due to corporate downsizing.
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It is very surprising that these big name stores are having to fight to keep their heads above water, but it also makes sense. Everyone is being careful about how much money they spend with this resection going on, so now people may not be buying the high priced clothes from Abercrombie & fitch or diamonds from Zales Jewelers. Even if the prices aren't increasing, the quantity demanded is decreasing due to families or students trying to keep THEIR heads above water and spending their money more wisely.
ReplyDeleteThis is a little surprising that such prominant companies are struggling. While smaller companies are more able to switch direction and focus on products more suited to the struggling economy, it is more difficult for large companies to refocus their marketing to focus on economically friendly products and services.
ReplyDeleteThat is certainly very surprising that these stores are all having difficulties. Nearly all of them are in my hometown so it will be interesting (and possibly disappointing) to see if any of them are gone next time I return home. Hopefully things turn around for these businesses, im getting tired of hearing negative news about the economy nearly everyday. It would be nice to see some positive news for once. E
ReplyDeleteThe undiscriminating destruction of this financial depression isn't unusual. Natural disasters will damage anything that stands in their path; why should an economic disaster be any different? Big names closing down some of their store proves their recognizing that they aren't immune and that this affects everyone.
ReplyDeleteThis is an example of demand that is no longer willing to settle for luxury provider's prices. America may be showing signs of a fundamental switch from a reckless consumer attitude to one of a more constrainded psyche.
ReplyDeleteI'm wondering why you want the economy to "turn around" wouldn't that mean going back to the rampant thoughtless consumerism and financial bungling that got us into this mess. We may never be as wealthy as we were in the 90's and 00's, but since much of that was artificially created, it serves that we could use a bit of scaling back. Maybe the country doesn't need as many Barnes and Noble's as there currently are.
ReplyDeleteUp until high school, I distanced myself from the news and whatever was going on beyond my high school life. It was selfish and necessary for me to retain my optimism about this world. Every time I turned on the tv or looked at the news online there was always something negative. There are so many reports about what is going on and not many solutions or initiation. E
ReplyDeleteI think that these stores bought into the "hyper capitalism" bubble and simply expanded faster than the true market allowed. Furthermore, unlike smaller companies they can't make sweeping changes as quickly because of the actual amount of capital they have. Therefore their only real option is to downsize.
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