Retailers and Why They are Failing

Just picked up this link which says it all really. The business model for all these retailer businesses is out dated and plain old fashioned. Their products are either more easily sold over the internet without the need for large overheads or just simply of poor quality as in Shabitat or others do it better like Ikea.

• Habitat poor quality others better Ikea.
• Oddbins outlets in high street no parking Majestic better see their sp growth.
• TJ Hughes same as Habitat.
• Thomas Cook prices not competitive with internet companies.
• Thorntons business model all wrong should be in supermarkets and internet.
• Jane Norman no knowledge
• Borders does anyone buy books/CD’s in store anymore? Internet business.
• Barratts very competitive market place.
• HMV see Borders same bad business model.

The only business of these that you’d expect to have a chance is Barratts, in the end you have to try shoes on before you buy so I presume their stores were in poor locations and the business was badly managed.

The bottom line is if consumers can get it on the internet from the comfort of their armchair they will, rather than battle though the weather and “crowds” to shop in the high street.

I can only speak from personal experience and many of my friends are the same, i can’t remember the last time i bought either a book or a CD or organised a holiday in a retail shop. In essence the majority of these have bad business models.