Going out of biz
With the coronavirus not going away anytime soon. It seems more and more businesses and even business sectors are going out of business. Most of the bigger businesses were having problems before, but the coronavirus seems to be the nail in the coffin for more and more of America’s past time big business names.
Some recent companies reporting bankruptcy contingencies as of 7-2020 are:
- J.C. Penney
- J. Crew
- Neiman Marcus
- Gold’s Gym
- Pier 1
- McClatchy newspaper chain
- Dean & Deluca
- Apex Parks
- FoodFirst, Bravo and Brio Restaurant Parent
- True Religion Apparel
- CMX Cinemas
- Rubie’s Costume Company
- Stage Stores, (Bealls, Goody’s, Palais Royal, Peebles, Gordman’s, and Stage Parent)
- Tuesday Morning
- Le Pain Quotidien
- 24 Hour Fitness
- CEC Entertainment
- Cirque du Soleil
- Lucky Brand
- Brooks Brothers
- Sur La Table
It’s smart business to analyze all of these companies to see any common denominators. Being recession proof and having a bootstrap plan seems to be essential no matter how big your company is.
Predictions from the data:
One thing we noticed is these are all premium services. None of them focus on a good price. They all were more focused on provided unique services or products, or a high end shopping experience.
This leads me to think we are creating a retail and services divide. I believe there will be only a few premium products that will stay active in malls and retail outlets. Most people will stop paying extra money for brand names they don’t need.
As most people care less about brands and convenience and more about price point and quality. New companies with this focus will take over in customer walk-in availability.
For example; a jean company focused on a great product at a good price will do much better than an over priced jean based off the name with a fancy store. I think some brands will probably last, like Seven for all mankind jeans. Simply because they have a good quality timeless product with loyal customers. Even if it is overpriced.
We’ll also see trends lead into healthier and innovative concepts. Basic gyms for example; will probably phase out, as luxury health clubs will have a market as will custom class style gyms. The standard gym will probably stay within three main brands. LA Fitness, 24 hour, and maybe a local service depending on the area. If a new super gym pops up, it will be very innovative and low priced.
One size fits all services will probably phase out as Walmart, Costco, Target, and Best Buy take over everything in their local business competitor markets. The middle of the row type services will split into more value based niches (5 below, 99 cent stores, ect..)or higher end luxury customer targets. Since middle of the row products will be dominated by huge retailers.
For wealthy people, time is more important than savings. For poorer people value will be more important than ever.
- It looks like we’ll see more niche higher end companies and even more niche value based companies. Leaving the middle ground to huge retailers.
- Internet business and technology will grow, even for brick and mortar type service and retailers.
- Companies that lack the ability to boot strap in difficult times, will see more drastic issues as the world economy becomes more volatile and unstable from hackers, global catastrophes, and pandemics.
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Charles has been working as a webmaster since 1998. Since then, he has had his hands in thousands of websites and has helped millions get online through a company he partially owns called Web Host Pro.