7 years ago
1
Retailers Are Going Bankrupt at a Record Pace
Department stores, electronics sellers, and clothing shops are most at risk. Retailers are filing for bankruptcy at a record rate as they try to cope with the rapid acceleration of online shopping. In a little over three months, 14 chains have announced they will seek court protection, according to an analysis by S&P Global Market Intelligence, almost surpassing all of 2016. Few retail segments have proven immune as discount shoe-sellers, outdoor goods shops, and consumer electronics retailers have all found themselves headed for reorganization.
Continue Reading
https://www.bloomberg.com
Join the Discussion
I'll put the blame where it's due, that's the shareholders of those companies. Due to the way the stock market works if you aren't making a profit, usually more than last quarter, you're in trouble. Many online retailers can afford to deeply discount items that are sitting in their warehouse for longer than a month or two, Best Buy can't do that because they've spent money and need to recoup more than they've spent because their shareholders demand nothing less. The exception would really be Amazon who does have a stock, but they're CEO is also the founder and doesn't mind telling people to go screw themselves because he owns the majority of the stock and can't be removed.