Will future generations shop in real stores with actual cash registers? If the number of hurting U.S. retailers is any indication, the answer is no. Shopping malls and traditional stores have struggled since the arrival of Amazon and other e-commerce sites. But other factors are to blame as well.
Attempts to attract customers are failing miserably for these stores, including one entertainment retailer that’s painfully behind the times (page 9) and another that announced it would close all its U.S. stores (page 12).
Biggest blunder: not utilizing athleisure and sneaker trends in a saturated market
The athleisure and sporting apparel industries are booming to the point of saturation, which gives Nike a lot of competition. The iconic company’s international sales show great promise — sales grew 9% in China — but U.S. sales ranked as 2016’s worst-performing stock. With 40% of sales coming from North America, Nike needs to innovate and adapt, especially with its sneaker brands. Consumers are looking online for alternative shoe and apparel brands.
Next: Online sales are killing this sports-driven retailer.