Online shopping hurting stores
Published 7:00 pm Tuesday, February 19, 2019
“It was the best of times, it was the worst of times,” so laments Charles Dickens in the opening of his classic historical novel “A Tale of Two Cities.”
The same could be said of Southwest Louisiana right now — economically speaking.
As Southwest Louisiana celebrates the economic boom industry has brought to our area, we’re also saying farewell to quite a bit of shopping stores as we do so.
In the last year, K-Mart, Sears, Toys R Us and Rite Aid have shuttered their area stores. Last week, Payless announced it will do the same.
Payless ShoeSource Inc. plans to file for bankruptcy later this month and will close all of its 2,300 stores, according to a report by Reuters.
Reuters reported Friday the move would mark the second time the discount shoe company has filed for bankruptcy in as many years.
Big-box retailers have been hard-pressed to keep pace in an era when consumers can hop on the internet and order much of what they need, choosing from a far greater selection than any one store can hope to offer.
“We’re seeing an evolution in retail,” said Janell Townsend, professor of marketing at Oakland University, told a Detroit television station. “The way we shop is going to continue to change over time.”
Townsend said that traditional retailers are hurting because of the overhead costs of space and stocking large amounts of inventory. She said she believes the key to keeping businesses open is shifting to a more “experience-driven” shopping model.
“We’re definitely seeing an emergence over time of more and more of those types of businesses,” said Townsend, pointing out that businesses like Ulta are seeing an increase in sales. “But we’ll still see big box, at least some of the big box stores, go away because they can’t figure out how to make it work.”
Payless had been trying unsuccessfully to find a buyer. After no such deal could be clinched, the Topeka, Kan.-based company decided to initiate preparations to liquidate, Reuters said.
Payless filed bankruptcy once before in April 2017, and exited 18 months ago, with about $400 million in loans, after slashing its debt pile from more than $800 million, according to court papers. A group of creditors, including hedge fund Alden Global Capital, took over ownership, according to bankruptcy court records.
The option of being able to purchase almost anything online has been an amazing development. Yet at the same time, care must be given to continue to patronize the businesses we have here or risk losing a way to try on clothing or pick up an appliance when something breaks down, or any of the other items or services we now take for granted that can be obtained by getting into the car.
This editorial was written by a member of the American Press Editorial Board. Its content reflects the collaborative opinion of the Board, whose members include Crystal Stevenson, John Guidroz, Jim Beam and Mike Jones.
