Since the start of the Great Recession, many businesses have been effected. Many businesses have highly struggled, including large businesses that most of the United State’s population thought did not hurt. However, the true reality is shocking. The large businesses are actually the ones hurt the most and over the longest period of time. A large percentage of them, though they continue to report impressive Net Incomes on taxes and other public documents, actually had to take out loans or other financing.
As retail of most types are typically an expense paid with disposable income, the sales were highly decreased as unemployment was at its record high and even before the Great Recession, such as the time of the Financial Crisis when there were lots of bail outs.
Since the rise of unemployment, many have started to save money, including those who never lost their job in the Great Recession. With the fear of repeating history, as it has before, there are less people spending, and many spending less, on retail related. Lots have changed to primarily shop online as amazon rose in popularity to dominate the online retail industry. The biggest advantage is the convenience, and lower prices on most products with free shipment if you pay a membership of $99 a year.
Since gas prices were rising at the same time, more people found it to be more economical to purchase online saving the gas and time cost of getting to and from the brick and mortar stores. As this increased in popularity, more brick and mortar businesses have suffered losing to Amazon.
The increasing closing of stores, bankruptcies and some cases complete shutting down of large businesses link to the rise of Amazon without making changes to be more competitive with the online market. The larger businesses have only increased expenses with the financing, return of increasing amount of jobs, in some cases, rise in salaries to obtain the higher qualified with hopes that better employees would improve the overall success. It has been evident to many business and economic professionals that this was the wrong way of going about the competition.
As jobs have increased so has the employment of the less qualified due to being an employee market right now. This has lead to lower performance, and more unsatisfied customers causing long term loss of business. There have been at least hundreds of small businesses rise, grow and be developed in the mist of the increased plummet in satisfaction with the large businesses. This has lead to a change in types of businesses that perform better as brick and mortar.
Due to increase in debt, decrease in sales, and lack of improving to be more competitive over extended time, many large businesses, more commonly retail, have had to face financial crisis. The financial crisis of each business had put the decision makers in situation only solvable by decreasing number of locations, filing bankruptcy or total shut down. As they say time is everything, so it applies to the many retail businesses who have waited too long to do something about the changes in demand by the evolving market.
If you want to open a business with the improved and growth of business, new markets, and perform with higher sales, please call us at 346-800-1912 for business consulting services. We will provide details on the mistakes to avoid which these large businesses are guilty, and the better ways so your business can thrive. We will do researches, provide ideas, and help with business planning, among other ways, to help insure success for you.