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What Retailers Can Learn from Recent Bankruptcies
Numerous lessons can be learned from last year's retail bloodbath that saw bankruptcy filings by large retail mainstays such as Toys “R” Us and Gymboree and countless smaller retail stores. Understanding the factors leading up to these bankruptcies, as well as the strategies used by retailers to emerge from bankruptcy, can give retailers significant knowledge about trends in consumer spending and how retailers can improve their overall positions going forward.
In addition to learning from what went wrong, retailers also can learn from what went right. Zara, one of the largest international fashion companies, has found continued success notwithstanding the industry's challenges by employing certain key strategies that other retailers may want to emulate.
A Sophisticated Online Presence Is a Necessity
It should be no surprise that a significant change in consumer spending habits has contributed to the downfall of a number of retailers. More purchases are being made online than ever before and, in fact, some speculate that online spending actually exceeds spending in traditional brick-and-mortar stores and shopping malls. Nothing evidences this change more than Cyber Monday's record-breaking sales that exceeded $6.5 billion in U.S. online sales.
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