Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

What Retailers Can Learn from Recent Bankruptcies

BY Corali Lopez-Castro
March 01, 2018

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.

Payless, Gymboree, and Toys R Us all cited an inadequate online presence as a significant factor leading up to their bankruptcy filings. Accordingly to its bankruptcy pleadings, Payless had plans to further develop and implement its online digital presence, but a decline in sales during 2015 and 2016 delayed these efforts.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models Image

Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.

Hyperlinked Documents: The Latest e-Discovery Challenge Image

As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.

Identifying Your Practice's Differentiator Image

How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.

Risks and Ad Fraud Protection In Digital Advertising Image

The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.

Turning Business Development Plans Into Reality Image

This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.