Big Chain Retailers In Trouble

Big Chain Retailers In Trouble

Brick-and-mortar slumps as E-commerce climbs.
After a rocky holiday shopping season filled with heavily promoted deep discounts, some retailers now being forced to close their doors.

In the past week, discounter Loehmann's started liquidating. JCPenney and Macy's announced store closures and thousands of layoffs.

Although their doors remain open, Best Buy says their holiday sales slumped so much so that their stock plunged 28 percent Thursday.

Once staples at the strip mall, Filene's Basement and Circuit City are all shut down.

So what happened to America's shopping habit? The Internet!

Shoppers are just getting smarter.

They're showrooming. Going to the store to see the item at brick and mortar stores and then looking for the lowest price online and when shoppers do hit the mall, they're prepared.

That's squeezing profit margins.

Traditional retailers extended their holiday hours but it's hard to compete with 24/7.

The result?

Online sales are rising, sales at physical stores falling.

Foot traffic for retailers over the holidays is now half what it was just three years ago.

That's according to Shoppertrak which monitors mall-visits across the country and some experts think many of those shoppers will never come back to a mall again.
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