Blockbuster brands may end up facing bankruptcy – CNN

Written by Staff Writer The Wall Street Journal recently reported that the retail sector is in a slump, even as online sales increase. Anheuser-Busch InBev’s sales have dropped as the consumer shift to digital…

Blockbuster brands may end up facing bankruptcy - CNN

Written by Staff Writer

The Wall Street Journal recently reported that the retail sector is in a slump, even as online sales increase.

Anheuser-Busch InBev’s sales have dropped as the consumer shift to digital trickles down to beer on shelves. Wal-Mart Stores saw a quarter-point dip in same-store sales, while consumer electronics in general are in decline, according to the International Council of Shopping Centers.

Retailers like Kohl’s and Macy’s have said they need to change to survive the transformation. But that hasn’t stopped a vocal minority — particularly analysts — who are calling for the retailers to break themselves up and start fresh.

“The businesses are becoming conglomerates,” says David Madani, chief U.S. economist at Capital Economics and a bank analyst for a number of years.

“Coupled with the fact that the majority of consumers are not using their credit cards, the end game is a failing of the [retail] sector.”

Online is here to stay, says Madani, but that doesn’t mean companies need to become more Amazon-centric. Instead, he believes consolidation is the way to go for retailers with long chains and a wide range of products.

“Cross-selling is what drives business, not price,” he said. “They’re looking at who they’re losing share to and what they can do to recapture the business.”

A growing trend in retail, stores like Macy’s and Nordstrom, are exploring new, digital strategies. Kohl’s is testing a program with Uber that allows shoppers to hail a car when they’re done with their purchases, while Macy’s, Nordstrom and Lord & Taylor all sold a special deal on Apple AirPods that ran online for over a week before being introduced in stores.

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