Toys “R” Us stores close: downfall sends wakeup call to other retail stores
With the recent closure of 800 Toys “R” Us store throughout the U.S., many retailers are reevaluating their own retail presence. Lucky for them, there are various solutions being proposed. Jamie Ward, group head of the retail finance group in the Boston office at Citizens Business Capital, tells Midwest Real Estate News the answer is online marketplaces.
By tying into booming online markets such as Amazon and Walmart, physical retailers can use these platforms for the implementation of their own shops. This provides customers greater convenience, lower prices and expanded product selection. Ward notes that about half the customers who start an online search today start it on Amazon.com. Retailers such as Nike, Land’s End and Lord and Taylor have brought in seemingly more customers through this “omnimethod” approach, as opposed to relying on just bricks and mortar stores and their own websites.
Retail stores and larger malls throughout the Midwest are also experiencing the same types of issues when trying to attract customers. The efficiency, cost savings and wide selection found with online retailers is brutal to compete against. Mall owners and leasing brokers are better off focusing on customer experience with the incorporation of restaurants, bars, and gyms – to name a few. Malls that give customers more reason to traffic their facility rather than browse the web will have the ability to stay afloat.
What’s the outlook for traditional retail?
There is plenty of hope — as long as retailers stay mindful of changing their habits as customers change theirs. Those physical retailers who decided to stay close-minded about an “omnimethod” approach may soon find themselves descending into their own demise, leaving the commercial real estate industry with a surplus of vacancies, and online retailers a heaping of new customers.