This is a must read article about why some of the biggest names in retail went under -- and what stores may follow
The Borders near me closed the other month. Wasn't surprising. Ditto for Circuit City. Gone. A few years prior to that it was Hollywood Video that rolled its end credits.
The problem is, none of them had to go. They each died of self-inflicted wounds.
Sure, a lot of their CEOs came out and blamed Iraq, the economy, e-commerce, etc., for their failures. But while these external forces may have played a part, they weren't the death knell. It's like the guy dying from heart disease blaming the doughnut shop.
With some big retailers biting the bullet, I wanted to delve into it and see what the real cause was, not the press release spaghetti. I wanted to see if there was a pattern that could be discerned, sort of like CSI for Retail. Guess what?
The death spiral in each case was kicked off by the company itself. Let's back up the story a bit.