Is the Retail Bubble Bursting? One Company Seems to Think So
While many Americans still enjoy the experience of actually walking into a store and buying an item, more customers enjoy the convenience of shopping online. Whether it’s on Amazon.com ($AMZN) on the online storefront for a physical location, shopping online is quick, easy, and doesn’t require leaving the house.
For brick-and-mortar retail stores, the convenience of online shopping is cutting into their bottom line. Fewer shoppers are going into stores and buying things. Retail chains with online storefronts are seeing increasing percentages of their business done online, while their hundreds of locations lag behind. Decades-staples like Macy’s ($M), JCPenney ($JCP), and Sears ($SHLD) are struggling to survive and closing hundreds of stores.
Unfortunately, things aren’t going to get better any time soon, according to one CEO. In fact, we might be witnessing the burst of the retail bubble, not unlike the 2008 housing crisis. What does this mean for retail companies, and how do they stay afloat?