In order to “Make America great Again,” the US government is striving to retain its manufacturing and infrastructure employment, and curb its age-old tradition of outsourcing. This has pushed the country’s retail sector beyond hindsight of its decision makers. Broadcasting news that informs the exit of major retail conglomerates such as Sears from North America has left the common US consumer high and dry. Despite significant investments, traditional business models continue to drag the US retail industry to a bottomless pit.
The US government has released statistical data that shows a decline in employment rate in retail business. With each passing years, retail outlets across the States are being shut down, closing doors for consumers and ripping the livelihood of store employees. Meanwhile, top retail giants are becoming ever-competitive, capturing all plausible moves to make profits from this plunge. In addition to this, automation is creeping into the US retail industry as well, resulting into heavy downsizing over the past few years.
Turbulences in Retail Supply Chains
A prominent reason why retail conglomerates are shutting their businesses in the US is rising conflicts between suppliers. Current investors of such corporations are growing more concerned about this supply-demand tiff. Reduced inventory being thrown out in the mix further infuriating the investors, leading the ultimate shut down.
Recently, Sears sued its supply vendor One World Technologies and adjourned its contractual supply agreement, citing unreasonable demands made by the latter. Even the cosmetics and fashion retail market in US is expected to witness a slight slump.
Considering the upscale life of US citizens, leading fashion retailers such as Michael Kors have reportedly witnessed a slump in their sales, which as compelled them to announce the closure of over 120 stores. Key players in the US retail markets are also pausing their expansion strategies, and focusing on enhancing store experience to keep customers engaged. Cosmetic products and fashion accessories are being developed with the input of innovative ideas, which may revive the interests of US consumers in consumer goods & retail.
Amazon vs Walmart Continues…
On the other hand, one of the world’s largest profit reaper, Wal-mart Stores, Inc. is witnessing a steady growth throughout its sales operations. Substantial budgets and deeply invested customers is what aiding Walmart’s survival in the dicey US retail settings. The company is likely to be focused on making its customer, its investor. By placing significant investment in its technological operations, Walmart is less likely to shy away from adopting latest retail trends. Over the course of last decade, the e-commerce boom has made Amazon worth more than twice of Walmart. In a bid to cope with stiff competition from Amazon, Walmart is also competing the e-tailing website in terms of pricing and product delivery.