USB report predicts 80,000 store closures in next five years
CHATTANOOGA, Tennessee (WDEF) – Store closing peaked in 2019 but a new USB report predicts nine percent of total stores will close in the next five years.
“When you look at the last two or three years it is going through the contraction that was happening pre-Covid, Covid just accelerated it. Just look at e-commerce growth the last year, e-commerce is accelerated with 10 years of growth.”
Fillogic is a Logistics solutions company for retailers.
Fillogic Co-founder Bill Thayer said as the industry continues to evolve toward e-commerce companies need to be able to pivot to succeed.
“Non-anchor stores were never designed to operate like fulfillment Locations. They were set up to be able to handle walk-in traffic. When you throw in e-commerce Fulfillment the infrastructure and of course the technology up until a couple of years ago wasn’t up to snuff.”
Thayer said the traditional brick-and-mortar store is not dead but, it’s in a state of transformation.
“There are 1100 and close shopping malls, we feel that they probably should be seven or 800. Look at someone like Amazon, they spend tens of billions of dollars building a logistics network. That network has always existed, it’s shopping malls. The only problem is they don’t have aggregated logistics to be able to optimize that process.”
He said stores in the Chattanooga area and North Georgia need to focus on the success of combining both in-person and e-commerce.
“E-commerce of scale is not cheap. You are just focusing on the direct-to-consumer aspect of it. You missed the very personal and cost-effective aspect of connecting people in stores.”
Logistics companies like Fillogic are working with companies to help manage the combination of brick and mortar stores and e-commerce.
“We work with our three partners retailers Mall honors and their parcel carriers to take this and utilize space and working together across platforms so retailers can use their assets more efficiently.”