Several large retailers filed bankruptcy and closed their doors in 2018. This hit everyone hard because many of these companies were household names. This has led to many people wondering if bankruptcy is becoming a business trend that will continue and start to hit business in Texas. When looking at the reasons behind retail giants filing for bankruptcy, it can give some insight into what to expect in the future.
Perhaps one of the biggest names to close its doors after filing bankruptcy was Toys ‘R Us, according to NBC News. Another huge name that filed was Sears. While the store did not completely go out of business, it did close many locations. Both stores noted decreased profits for their decisions. Many experts say competition from online companies hit brick and mortar retailers hard and led to closing such as these two companies.
There were quite a few more companies that filed bankruptcy, many closing completely, due to competition from online retailers. Online companies are able to offer lower prices. Couple that with extremely fast shipping options and it is tough for consumers to choose a brick and mortar store over an online option.
Will this continue to be the trend? Experts feel it may. As long as online retailers continue to grab onto a large segment of the market, it is very difficult for brick and mortar companies to compete. This will lead to lower sales and more difficulty keeping the doors open. This information is for education, and it is not legal advice.