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- Sears has filed for bankruptcy and announced it would close more than 140 stores, but it isn't the only department store that has struggled recently - here's why
Sears has filed for bankruptcy and announced it would close more than 140 stores, but it isn't the only department store that has struggled recently - here's why
The rise of e-commerce has played a major role in the decline of department stores.
Department stores are being forced to face up against giants like Amazon and Walmart, and many are coming up short in their e-commerce offerings.
Source: Business Insider
Macy's, JC Penney, Sears, and Lord & Taylor are all closing stores.
Lord & Taylor is growing its e-commerce business, opening a new dedicated website on Walmart's website in addition to its own website.
Source: Business Insider
As a result of more shoppers turning to online stores, there's also been a decline in foot traffic to malls.
Stores like Sears end up feeling abandoned.
A higher demand for off-price products is also taking a toll on department stores.
Stores like TJ Maxx and Marshalls carry brands like Michael Kors, Tommy Hilfiger, and Calvin Klein for less than department stores, so many shoppers are more likely to shop at the off-price retailers.
When Lord & Taylor's flagship store began its closing sales, it started to look more like an off-price retailer, with massive sale signs and cluttered clothing racks everywhere.
The decline of the middle class has also taken a toll on department stores.
Source: Business Insider
The most successful stores in retail right now are luxury stores and budget stores, and those that depend more on middle-class spending aren't doing as well.
Source: Business Insider
Many of the struggling department stores aren't in the best shape.
JCPenney and Lord & Taylor were very cluttered during our recent visits ...
... and sales signs were everywhere.
On our most recent trip to a Sears store in Jersey City, New Jersey, we saw firsthand how the store was being affected by these issues. There were sale signs everywhere, and the store was completely abandoned.
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