Naperville Business Attorney Discusses Macy’s and Sears Closings

closing, Naperville business law attorneyFor the last 150 years, the iconic department store has been not only a mainstay of the retail sector but a trendsetting leader in the industry. The world of retail sales, however, is constantly evolving, and the shopping habits of today’s consumers are forcing a shift in the way large-scale retail companies do business. The changes are so great, in fact, that at least two world-famous department stores have recently announced plans to close more than 200 stores between them.

As a business law attorney, I recognize that those who own smaller retail companies may be apprehensive about the current state of the industry. If you own any type of retail-related business, it is important to develop a strategy that will help you meet the changing needs of your customers.

Former Anchors to Close

Large department stores have traditionally served as “anchors” in malls and shopping centers across the country. Smaller outlets within the mall tend to come and go more often and offer a fairly specialized selection of merchandise. By comparison, stores like Macy’s, Sears, and JC Penney have long been seen as dependable and consistent, and malls have relied on them to attract shoppers.

Over the last several years, however, many large stores have been struggling to compete in the retail marketplace. Sears, for example, has been publicly battling low sales numbers, even after the Chicago-based company acquired Kmart more than a decade ago. More than 100 Kmart stores and 40 Sears locations will be closing over the next few months.

Unfortunately, another household name recently announced that it was facing similar issues, as Macy’s announced in August that approximately 100 then-undetermined locations would be closing in the near future. Last week, Macy’s updated its announcement to include the specific location of more than 60 stores which will be closing this year or have already closed. Included in the list was the Macy’s location at Stratford Square in Bloomingdale. The company indicated that the closings will result in the loss of nearly 4,000 jobs and that more than 6,000 other jobs will be eliminated due to cost-control measures.

Online Shopping Trends

Macy’s chairman and CEO Terry J. Lundgren said that the closings were part of the company’s effort to balance the need for brick-and-mortar stores and the growing prevalence of online shopping. Retailers across the country and around the world have faced similar challenges as they look to compete with the affordability and convenience of internet outlets like Amazon, eBay, and Overstock.

As a business owner in the retail sector, you may be experiencing challenges in finding your niche in the growing online marketplace. With careful planning, advanced market research, and the right products and services, however, it is possible to grow your digital presence and reach more customers than ever before. To discuss your current situation or for help with adjusting your business plan, contact an experienced Naperville business law attorney today. Call The Gierach Law Firm at 630-756-1160 and get the guidance you need from a team with the knowledge and skill to help you and your company succeed.