I’m more or less quoting analyst Phil Lempert in the title there.
“With the minimum wage going up to $15 an hour and more people turning to online shopping, more stores are going to close,” Lempert said. “It’s fine to say that everyone should have a living wage. But the money has to come from somewhere.”
Lempert said a growing number of retail outlets have fallen victim to “showrooming,” where customers will walk into a store, try on the shirt or jacket they like and then order it online at a significant discount.
“These stores have to look at not at how they will compete with other brick-and-mortar stores, but how they will compete with Amazon,” he said. “It’s become a holistic environment where people can buy things on their mobile phones and then have the products delivered by the time they get home.”
…Am I the only person who can see the answer, there? Which is: if Sports Authority got killed by showrooming, why didn’t they just duplicate the effect? If people will buy clothes online, then sell them the clothes online yourself. Or, heck, partner with Amazon and have them handle the distribution. I know of more than one used book seller that has happily embraced Amazon’s digital marketplace in that regard.
OK, there’s probably a good reason why Sports Authority couldn’t do that. Or several reasons. But we have created what is now effectively a countrywide, instanteous communications network. That particular genie isn’t going back into the lamp, absent a series of EMP pulses or other symptom of the collapse of global civilization. Companies are going to have to deal with it somehow.
PS: Mind you, minimum wage increases didn’t help matters there for Sports Authority at all.