As we continue our mad dash through what many retailers herald as the busiest shopping month of the year, an article on MSN caught my eye. The author, Michael Brush, is talking about seven companies that he doesn’t think will make it to the year 2020. I was anticipating them to be seven companies that no one had ever heard of, but as I read deeper into the article, I realized that I had heard of six of them! The only one that I was in the dark on was the seventh, McClatchy.
As for the other six, I was shocked at first that someone could think they wouldn’t be open in 10 years. But then I got to thinking about the trips I have made to those stores or their websites, and it became a little clearer about why they are on borrowed time.
The first company Brush discusses is Palm, the company that was the first to introduce smart phones. It doesn’t take a genius to realize that with companies like Apple, Google, and Blackberry taking the markets by storm, Palm didn’t stand a chance. From a high of nearly $18 just two short months ago, Palm stock now sits right around $12. With this being the season of shopping, a $6 drop is hardly good news.
Sears made the #2 spot on Brush’s list of companies destined to fail. This one didn’t surprise me either, as Sears always appears to be the least busy anchor store at the West Acres Mall in Fargo. Whenever I go in to browse, I am stunned by their high prices. Electronics are the same price at Best Buy, and Best Buy is an electronics store! Another thing that has always struck me about Sears stores is that they seem to be perpetually rundown and/or dirty-looking. There is nothing appealing about shopping in a store that looks like its floors haven’t been washed in years.
Blockbuster and Kodak were next on the list. Several years ago, I was a frequent customer of Kodak’s…you know, back when our cameras actually required us to develop film?! However, I remember cringing when the bill would come back for $8 for a roll of 24 pictures. That $8 was expensive for pictures 10 years ago! When I moved to Fargo and had access to video rental stores, I think I set foot in Blockbuster once. After seeing that renting a movie for one night would cost be $3-4, I left and haven’t been back since.
Borders and Magellan round out Brush’s list of failing companies. I will admit that these ones surprise me a little bit, as I enjoy shopping at Borders more than I do Barnes & Noble. I am not as familiar with Magellan, as I hardly ever go anywhere that requires the use of a GPS system. However, I know lots of people that use their GPS systems religiously, and I refuse to believe that they are all Tomtoms and Garmins….
I wanted to take the time and mention this little article in my blog this week because, especially during the holiday season, it’s easy to forget that some stores are struggling. What with sale prices being the norm, it is easy to overlook the fact that a lot of these stores are not usually as competitive in price. With all the choices out there today for consumers, stores have to be competitive in every arena, including their pricing and their availability to the consumer. Social media helps them with the second, now we just have to help them find something for the first!
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This is very interesting. Especially with our economy, I've usually wondered how stored are doing. I can definitely see Sears as a potential store that would be failing now that you mention it. They are quite dirty. And who wants to try on clothes in a changin room that is disgusting as well? I have also found some items that were more expensive on their racks that were cheaper on sales racks for instance in American Eagle. They are definitely not on my list of top 10 stores to shop in. It's wierd to think that Kodak could be failing though. Very interesting blog!
ReplyDeleteGreat Article. I would have to agree with the list. Most of these companies did not prepare themselves for the new global era and fail behind tough competitors such as Wal-Mart. Now days a company has to number one control costs and number two sale the right item in the right market.
ReplyDeleteLook at Blockbuster, if they would have figured out a way people could rent movies and download them versus visiting a store they would have greatly reduced their overhead. Would have been more competitive and maybe even had the chance to expand into the Asian market. Last week I visited the local store only to find out I was being charge for a late movie. Then I knew, this company is grasping for dollars to stay afloat.