As we read regularly, many retailers are having tough times. Today, we study how to recognize declining retailers: three stages of decline.
According to Retail Dive, these retailers filed for bankruptcy projection in 2017. Many of the firms continue in a weakened state. But others have gone out of business:
BCBG Max Azria
Styles For Less
Toys R Us
Now, click the image for a description of each firm’s status.
And view CNN’s video on U.S. malls and shrinking retailers.
Recognize Declining Retailers: Three Stages
Though not always considered as such, data analytics must start with knowledge of what to monitor. In the case of declining retailers, it is essential to be aware of their stage of decline.
According to Outcalt and Johnson, eight “vital signs” indicate a retailer’s stage of decline. As shown in their chart, these vital signs can be placed into three stages:
In stage one, retailers have entered decline. This is the best time to modify strategies and tactics. Why? Because it is easier to turn performance around. By the time retailers move to stage three, it may be too late to fix things. Why? Because the vital signs are so off, it may not be possible to successfully modify them.