As per the data given by U.S. government on Friday, it has been noticed that retail sector sales had seen their worst two months i.e. February and March in more than 2 years.
Due to weaker sales receipts in February and March, some of the changes could be seen in retail landscape. A wave of store closures and bankruptcies happened in these two months. Including some of the major chains like chains Sears, Macy’s, and Kmart, the expectation is that about 3,500 stores could be closed in coming months.
While, others are describing these changes as perfect storm, due to which retail landscape is upended.
Murali Gokki, MD of the retail division of business consulting firm AlixPartners, said it is one of the biggest changes that has taken place in the last ten years and has been the growth of e-commerce, and speedy ascent of m-commerce.
“Mobile commerce was marginal back in 2012. Now it accounts for almost 20 percent or more of online purchases,” Gokki said.
NRF chief economist Jack Kleinhenz said “Other industries have gone through transformations. Look at the banking industry. We had twice as many banks 10 to 15 years ago as we do today. There are consolidations that go on. It’s a natural phenomenon in a market economy.”