Is the Sky Falling on Local Retail?
Since Jan. 1, big retailers have announced they will close 3,687 stores this year. And that doesn't account for big restaurant chains (Outback, Bonefish Grill, Carrabbas), and the countless home-grown local merchants shutting down this year.
It's not exactly a new trend. Two years ago, 5,077 retailers closed, approaching the all-time high set in 2008. Closed shopping malls are eery reminders of happier times -- the days when we were more apt to know the name of the ice cream man than the UPS and FedEx guy.
It's easy to blame Amazon, and easier still to believe that the sky is falling on local retail. It may very well be, but how do you account for all the businesses openings -- like Target (30 stores), Costco (29), Ulta (100), TJ Maxx (65), Dick's Sporting Goods (43), Dollar Tree (1,000), and Ross (90)?
Suffice it to say that local business as we knew it is going the way of the big shopping mall.
So what's really happening? Over the past four weeks we've picked up on some fascinating trends in how these surviving businesses feel about local marketing -- and what they're doing right now -- via a survey of more than 1,000 advertisers. The polling began April 3, and the initial findings were so compelling I thought we'd share them in a webinar this Thursday (May 11). It's open to the first 500 participants. Sign up here.
The latest results are more about what these advertisers are doing right now than what they plan to do. For instance, they're telling us:
- Most are holding steady in terms of ad budgets. A small percentage are planning cuts, and a healthy 21% will spend more.
- They're placing big bets in broadcast media and especially social media. We've taken a look at five-year trending on this data, and the findings are remarkable.
- ROI is their biggest concern. They see some media as having greater ROI, and that's where they're placing their bets.
I hope you can join me for this webinar. There's a lot happening right now.
Sales, advertising, marketing, and communications leader. Professional educator. People developer.
7 年Great info and insight, Gordon. Valid counterpoint, Jack
Owner/Founder at Revolutionary Republic Radio
7 年Is the Sky Falling on Local Retail? NO... none of these stores qualifies as Local. They all are national chains. In fact, while they are closing, more "Mom & Pop" retailers are popping up. The demand for retail stores like these have been diminishing since online stores have come into the picture. However, the new model of smaller clothing, appliance, electronics stores built from within a local market are doing well. But the online markets are also trending up. The closure of these National retailers is bolstering sales in other markets, from true local, to online.
Would be interesting to see how new businesses coming into the market compare, and what kind of growth on existing is happening as well. This is just one piece of the puzzle.
CEO, StrongerContent.com | Emmy Award winning Producer, Writer | SEO Expert | B2B Marketing Strategist |
7 年Gordon, those are amazing numbers as the retail world re-invents itself in the "Amazon Era" of doing business. My first job was selling paint at Sears. Sad to see what's happening there with Sears, KMart, and JC Penney as they struggle. Aeropostale, Direct Buy, Sports Authority, Vestis Retail Group, Golfsmith, Movie Stop, Backwoods Retail, Nasty Gal, Pacific Sportswear, Hancock Fabrics, and Total Hockey - all filed for bankruptcy last year.
Happily Retired
7 年It's tough in the Newspaper Advertising Market--Digital, ROP & FSI disappearing. Constantly re-inventing ourselves to garner more share of market with what's left out there.