A couple of weeks ago I stumbled on a CNBC article by Courtney Reagan about Retail Chains That Disappeared. As I flipped through the slides I noticed that many of the featured retailers suffered common fates. So, I reorganized the list. I broke down each company and the reasons for their demise (according to the article.) Here are the leading causes of retail death:
1) Big Box Stores
Six of the thirteen retailers featured in the article owed their demise, at least in some part to competition from big box stores. Some of those, like Woolworth and KB Toys were killed by mass market stores, but others, like CompUSA, were done in by larger footprint retailers in the same category.
2) Economy
Five of the retailers on the list were hit hard by tough economic times. 2008 was an especially difficult year. Circuit City, Linens & Things, and Bombay Company all died, at least in part due to lower consumer spending that came with one of the worst recessions in decades.
3) Digital Technology
Video may have killed the radio star, but digital technology did a number on brick-and-mortar retailers like Blockbuster, Borders, and Tower Records. When books, music, and movies went digital, the supply chain costs of moving and storing physical media became more difficult to justify.
4) eCommerce
Even when those products were sold in physical format, it was cheaper to to buy them online. But, eCommerce has had an impact on many other categories and also played a role in the death of brands like Loehmans, Filenes, and Daffy’s. In an interesting twist of irony, six of the thirteen retailers abandoned brick-and mortar and have reinvented themselves as eCommerce only companies.
4) eCommerce
Even when those products were sold in physical format, it was cheaper to to buy them online. But, eCommerce has had an impact on many other categories and also played a role in the death of brands like Loehmans, Filenes, and Daffy’s. In an interesting twist of irony, six of the thirteen retailers abandoned brick-and mortar and have reinvented themselves as eCommerce only companies.
Omnichannel retailers—those that seamlessly integrate the best of both digital and physical worlds at each step of the customer experience—are likely to enjoy significant advantages over retailers that try to pursue either one alone or both independently. For omnichannel retailers, websites and mobile apps are not just e-commerce ordering vehicles, they are front doors to the stores. Stores are not just showrooms, they are digitally-enabled inspiration sites, testing labs, purchase points, instantaneous pickup places, help desks, shipping centers, and return locations.”
The retailers who can adapt to this model are most likely to survive. I think 3D printing plays a big role in the transition. In the short term, while its still new and novel to almost everyone, 3D printing can drive traffic and help stores sell more stuff. Longer term, it can help retailers deliver on the omnichannel promise, giving them better ways to inspire and engage while making products available instantaneously, when and where they’re needed.
At 3DLT, we help retailers and their suppliers offer 3D printable products online and in-store. Just as cloud technology eliminates the need for software, hardware and storage, we’re creating a network that removes the cost and risk that goes along with producing, shipping, and selling physical goods.
Not unlike books, music and movies before, product manufacturing will go digital. Retailers who engage this megatrend now can position themselves for omnichannel success. Those who don’t could join the ranks of those impacted by digital technology, and that boneyard is full enough already.
3DFaster is a partnership with 3DLT To learn more about 3DLT and how we change the way people buy things, visit 3DLT.com/retail or SayHello@3DLT.com
About the author: John Hauer is 3DLT’s Chief Executive Officer. Working mainly in the print, eCommerce, and retail industries, he has nearly 25 years of sales, marketing, and technology experience. John has launched and managed several B2B and B2C websites. In 2012 he co-founded 3DLT, connecting the designers, consumers and producers of 3D printing. 3DLT sells direct and works with retailers, helping them build 3D printing service offerings online and in-store.