Borders announced on Monday, that it was unable to reach a deal for a going-concern sale to salvage its 400 remaining stores and 11,000 jobs. A liquidation sale of its inventory and store contents will begin as early as Friday.
I believe this is a symptom of the state of the publishing industry as a whole and answers the question, “Can a retail ‘brick & mortar’ business compete with online giants Amazon and eBay?”
The answer is a resounding “NO!”
I only wonder how much longer Barnes and Noble stores will be able to survive.
Over the last decade some powerful retail businesses have fallen victim to price pressure served up by online stores. Retailers Circuit City, Comp USA and Sam Goody, all succumbed to the pressure of competition.
Retailers across the board are suffering from market pressure and margins are growing too thin to support real estate and payroll. The ones to survive will be those that have established a strong online presence and are a price leader in an already crowded retail landscape.Wal-Mart, Target and Best-Buy are all feeling the effects of a soft retail environment as unemployment still hovers above 9% and consumers are clenching disposable income like never before.
For better or worse, Best-Buy has become Amazon’s “Try before you buy” store. Will they be the next big box to end up on life support? Time will tell. In the meantime consumers benefit from low prices and quick delivery.
Now all I need is a tablet that doubles as a cell phone. (And the money to pay for it.)