US Retailer, Gymboree filed for bankruptcy today. They have been closing down stores since June, impacting more than 350 outlets nationwide.
Gymboree isn’t the only retailer to cut its brink and mortar footprint as online shopping booms. So far this year, 5,300 store closings have been announced, according to Fung Global Retail & Technology, a retail think tank. Many more US retailers have filed for Chapter 11 – Radioshack, Rue 21 and Payless ShoeSource. Even Sears are planning to shut down more than 250 stores this year.
This phenomenon will be hitting our shores sooner than expected as online shopping is getting a serious foothold in Malaysia. With footfall into malls across the nation continue to tumble, it is a serious sign that opening outlets spell doom and gloom. Malaysian retailers needs to grapple with a digital strategy in order to survive. With many online shopping platforms operating across the Asia region, competition will get even fiercer as consumers will be spoilt for choice which comes with a lower price.