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Have you heard lately that Payless is closing all of its stores in Canada, some in US and Puerto Rico? According to the news, the reason for the closure is that the prior reorganization was ill-equipped to account for the current retail realities -which means that the management made a big mistake by not accounting for the growing online shopping in Northern America.
It is quite revolutionary that the buying patterns of the public has led to massive reorientation and bankruptcies of major retail players, Sears, ToysRUs, Macy’s, to name the recent ones that have folded or beginning to fold up.
While Payless caters to the lower segment of the market where price is a sensitive issue, it wasn’t immune to the competition that was happening online when buyers shifted the way marketing, merchandizing, branding and promotions, distribution, delivery, payment systems, and customer services are done with retail. Big box companies are beginning to see the follies of the mantra, “big is big.”
What should be obvious is that Walmart remains the number 1 competitor in industry. Walmart is trying to succeed in the online shopping space where Amazon remains the industry leader with selling things online. Amazon and Walmart are up to the races to dominate the future of the marketplace.
Let's see who will win but at present, these two companies have shown that it pays to be adaptable and to listen to your customers!
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