Many chain stores are closing
Read the article attached.
Many chain stores are closing. The Sports Authority has stopped its retail activities. Recently, J.C. Penney’s announced the closing of its last three stores. It is clear that Sears is also in a downward spiral that is likely to result in the demise of a long-time U.S. retail giant. In the article “As chain stores close, pain and opportunity,” author Joyce Rosenberg suggests that this phenomenon provides both strategic “pain and opportunity.”
Post a clear and logical response in 150 to 200 words to the following, providing specific examples to support your answers.
- Strategically, what are the opportunities that a well-trained and experienced strategic thinker can gain from these closures
- As a business leader, what might you do to realize the “opportunity” suggested by Rosenberg?
- What potential pitfalls might you want to guard against? Is location of these closing retail giants a factor?
There would be many opportunities if a large chain store closed for smaller retailers. Smaller retailers stand to gain new customers from the closed chain store, that would be the most obvious benefit. Additionally, depending on the size of the building that was closing, a strategic business leader might develop that property into a market of smaller retailers that would in effect offer all the same services and products of the retail giant. The cooperative would work to bring in more customers and foot traffic than for a specific type of small business, thus benefitting the whole group of small retailers.
Investing in an endeavor of that size may extend smaller businesses beyond a what is a prudent debt to income ratio. It would be pragmatic to do a cost benefit analysis on the potential increase in business as part of a strategic plan. This could present undue risk to the business. Location could play a role certainly. Most large retailers are considered anchor stores for retail shopping outlets like malls or general shopping districts. A loss of a major anchor store could pose a negative effect on small business if there is a larger alternative to the store that closed nearby. Extensive research of the surrounding market would be wise
Answer preview Many chain stores are closing
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