Restructuring in e-commerce

Written by VentureXchange

January 10, 2020

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According to the TMA Global, restructuring in e-commerce has raised some serious numbers. On the heels of 5,864 retail store closures in 2018, at least 8,558 additional stores will close in 2019. That number could climb as high as 12,000 in the years to come.

For instance, the media continues to describe restructuring as a “retail apocalypse”. Therefore, restructuring is more important now than ever. In addition, the U.S. still has much more retail square footage per capita than any other country in the world.

The rise of e-commerce and growth of online retailers like Amazon have forced an inevitable rationalization of brick-and-mortar retailers. Jon Graub of A&G Realty Partners says identifying the strengths and weaknesses of a retailer’s real estate portfolio is crucial. In other words, it is highly important to include all facts in the planning process before commencing a restructuring. He describes the data analytics revolution. In his analysis, he provides real estate advisors tools to identify which assets should be retained or sold.

E-commerce in Retail

For a long time, many saw the future of retail as a battle between online and brick-and-mortar sales. That fact raises the question of how will that reflect the way people shop? A consumer might start their search online to compare prices, and then check the item in person before purchasing. In other words, people will shop using both online search and by visiting the store. Therefore, this will not reflect on the way people shop.

That’s why a multichannel approach is becoming a key strategy for retailers.

TMA Global

By offering customers the option to browse online and buy in-store, retailers have an advantage over businesses. These advantages are only online or brick-and-mortar stores.

Technology continues to change the rules of engagement and consumers are more demanding. Besides, a real challenge is getting consumers to notice your brand amid all the noise in the market.

E-commerce has made more brands and more products accessible to more people than ever before. In other words, restructuring is becoming important now more than ever for retail business.

If everyone can get everything, it’s only natural that some people will seek out unique products, places, and experiences. Paying less for more and bragging about it has become a trend in itself.

Modern shoppers don’t want to pay full price and they aren’t afraid to share their opinions through reviews.

Consumers are educated on pricing strategies and are now prioritizing value. With more options and information at their disposal, consumers prefer to do their own product research.

Besides, consumer values now encompass a variety of attributes. The introduction of smartphones, which coincided with a global financial crisis, enabled consumers to become more price-savvy and informed.

Key takeaways for Restructuring e-commerce

Sustainability is no longer optional in retail. Moreover, green generation is making sustainable shopping a priority. That being said, more consumers now choose to buy brands based on their social and environmental impact.

Consumers are shopping with their emotions and values. Therefore they do care. Some companies have tried to appear socially responsible through clever marketing campaigns without building the cause into the soul of their business.

Today’s discerning consumer can see through clever tactics and demand more. Nowadays, retailers cannot just say they have a goal, they need to show the consumer that they are acting upon it.

Retailers are moving away from ad hoc sustainability marketing campaigns and abandoning minor themes that are not essential to the business.

In 2020 we will see companies make more meaningful sustainability commitments. Businesses have a significant impact that aligns with the values of the company, its brands and its target audiences.

Moreover, technology continues to change the habits of engagement and customers are becoming more demanding.

Getting them to notice your brand amid all the noise in the market is an even greater challenge.

One out of three Millennials uses social media as their primary tool to interact with brands and companies. Therefore, restructuring in retail business amongst other industries has become an essential part of the business. Financial restructuring guide can help you to evaluate your business needs and how to implement the financial restructuring.

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