Retail Responds To Lower Profits By Dumping Some Stores, Revamping The Rest

Retail chain CEOs are wondering what to do over the long term about declining store traffic and slipping profit margins. At the core of the problem, some analysts say, is the overheated expansion of brick-and-mortar outlets in the 1980s and 1990s. So far, the options seem to be: filing for bankruptcy (Gander Mountain) or closing stores (Macy’s, Sears). Money saved using these tactics can be applied toward reworking e-commerce operations. Other options include: online buying/store pickup, launching exclusive brands, keeping prices competitive, and installing gadgets and software to make better use of stores. The goal of today’s retail stores, one consultant says, is transformation by “leveraging existing resources.” [ Image credit: © Gander Mountain  ]