The State of Retail Business & What Happens After Covid-19

As most of you probably know, retail business as a whole has been stagnant and declining for the past few years. There was news just out that many of the big US retail chains may not survive this crisis: Sears, JC Penny, Neiman Marcus and J. Crew, and most big retail chains across North America had been on life-support long before the Corona virus reared its ugly head.

It seems like not long-ago; people were laughing at Amazon – they wondered who would buy something online when they could simply go to the their local store for it? In a 2000 interview, Jeff Bezos said “Three years ago our stock was $1.50 a share, today it’s $30-something.” And now in 2020 it’s at $2,011.00 a share!

Canadian stores like Hudson’s Bay have been hanging on by a thread. Their only saving grace is their extensive real estate holdings.  And is there anyone that does not wait for a 40%-60% off sale instead of buying at regular price?

The writing has been on the wall for at least the past five years and retail was either going to have change how it did business or die.

And then Covid-19 happened and likely sped up this retail train wreck.

Just last week it was reported that 23% of small businesses in Canada could not pay their April rent. Bigger companies like GameStop just announced the closing of over 300 stores. And Starbucks announced they are closing at least 200 Canadian locations. How many of these businesses were already running week-to-week?

Just like any major economic change, there will be fear and some desperation, but the businesses that are prepared in advance have the best chance of coming out the other side, with viable businesses that will grow in our newly minted landscape.

The past thirteen months of business for my company, Create Digital Growth Inc. has given me the opportunity to work with many great people! My eclectic mix of clients has seen me working with a global corporation with over fifteen billion dollars in revenue as well as a small start-up business with zero revenue but fantastic ideas. In between, I’ve had clients from the mental health field, educators, real estate agents, home renovations and more.

I have been lucky that my business has not declined. In fact, it has improved, as more businesses look for ways to move themselves online. For the months of July and August, I am very pleased to be able to offer complimentary virtual consultations for your business. If you are interested, please contact me and let’s see how we can improve your online success. There is a limited quantity available.

Edit: The troubling retails news keeps getting worse. Health retailer GNC files for bankruptcy; 29 Canadian stores to close! Read the full article here

www.JayGranofsky.com – 416-671-3114 or email: jay@jaygranofsky.com

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