The previous decade was hard for physical retailers. The ascendancy of e-commerce, stagnant incomes, and shifts in how consumers shop all helped change the game. And with that change come store closings.
As of 2020, 25% of shopping malls were projected to close over five years. The COVID-19 pandemic only hastened that downfall. With their demise came countless shuttered stores or even entire chains going down with them.
Here are a few iconic businesses that went under in recent years, and one that will probably join them soon.
1. Blockbuster
Blockbuster dominated the video rental market at its peak, boasting 9,000 stores worldwide. But when Netflix and Redbox started encroaching on the business, the rental giant lost 75% of its market value in only a few years.
You can chalk most of that loss up to boneheaded decisions on its executives’ part. Turning down the opportunity to buy Netflix for a paltry $50 million was a blunder that would haunt the chain throughout its decline.
As of 2022, one Blockbuster store remains in the small town of Bend, Oregon.
2. Toys R Us
For generations, Toys R Us was every kid’s favorite place on earth. But like other beloved brands, their success led to their downfall.
The rise of big-box retailers like Walmart and Target should have been their wake-up call, as the retail giants could almost match Toys R Us’ selection while undercutting prices. By the time e-commerce began to take its place in the crowded market, the writing was on the wall.
But there’s still hope.
The brand’s parent company, Tru Kids, managed to open a couple of new locations in 2021 offering a modernized version of the classic store. But with the pandemic still in full swing at the time, these shops met a quiet end less than a year later. All the same, rumors persist of a revival.
3. orders Group
Like rival Barnes & Noble, Borders dominated the bookseller’s market by crushing mom and pop competition wherever it found it. But then, in turn, Borders found itself crushed by the internet.
Lest we forget, Amazon started as a modest online bookstore before it went on to take over the world. The online giant would have provided enough competition on its own. But the rise of ebooks further dashed any hopes Borders had of clinging to relevancy.
In 2011, Borders filed for bankruptcy and liquidated its assets.
4. Macy’s
Few chains can claim to be as iconic as Macy’s. Their Thanksgiving Day Parade is still a major TV event, and the store is immortalized as one of the key settings in the classic Miracle on 34th Street.
But Macy’s has fallen on some hard times. Earlier this year, the company announced that it was closing stores as part of a three-year plan to shutter one-fifth of its physical locations.
Upper management insists that it will retain the majority of its stores and physical retail is still a major part of the business plan. But chains like Sears and Montgomery Ward have made similar claims.
We Can Expect Store Closings to Continue
It’s unfortunate, but shuttered stores will probably only become a more common sight. Either due to COVID, shifting business trends, or plain old mismanagement, store closings are common news these days.
But it’s not all bad news. In the wake of these losses, small retailers are starting to claw back some of that market share. Indie game shops and bookstores are cropping up to replace the Game Stops and Borders.
To see if this is a trend that can continue, be sure to keep up with our latest industry news as it develops.
