In recent days, it has become very common to hear about the closure of several retail outlets. Some of these stores were once not only regarded as market leaders but were the pride of high streets and the shopping malls. Toys R Us have closed 735 stores in the US and 100 in the UK. The icon & symbol of the British fashion, Marks & Spencer, has plans to close 100 outlets in the next 4 years. Now Dixons Carphone has also joined the band by announcing the shutting down of 92 stores in the near future.
Some of these famous brands had become too obese to adapt to the changing retailing environment. Moreover, customers buying habits have undergone a sea change as a result of widespread use of internet and mushroom growth of online businesses. The prevailing competition nowadays is not local or national but truly international. No wonder that even in this changed scenario, low price retailers like Aldi, Lidl and Primark are not only surviving but expanding too! The erstwhile concept of 'Small is Beautiful' has become more relevant in retailing now. We should not be shocked if we find out about the collapse of a few more retailers in the times to come.
Bharat Shah
Rayners Lane
