Anchor stores, stores that anchor an entire shopping center, are closing all over the country. For small to midsize businesses who lease space in proximity to these anchor stores, this may be concerning. One being that if the anchor leaves then the rent for your space should be decreased. This is important because foot traffic would severely decline without the anchor present. Also, if the anchor store doesn’t survive, then what is going to happen to you and your business? You cannot count on their business practices to drive your business practices.
We believe that both digital and physical retail need to learn to coexist in a healthy ecosystem. Amazon has proved the ability by opening the Amazon Go stores. They believe that there are still people and products that you need to shop at a physical location for, such as clothes, while others may be perfectly fine with ordering three pairs and returning the two that don’t fit. One thing people have trouble shopping online for is groceries; people like to examine meat, vegetables and desserts, for example. Another thing is coffee; it needs to be in a convenient location so customers can stop by quickly.
Businesses that sell products that can easily be ordered online are the ones who are truly in trouble: failing to abide by changing times will result in the death of retail as we know it. People will use your store to find a product they like and then order it online to be delivered to their homes (most likely for cheaper!). You have to create a three and five year plan to keep your business relevant even if your nearby anchor store is starting to suffer. The latest to close is Sears….what’s next?
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