The Change is Historic
The systemic change in the retail landscape is historic. Affecting the five distinct types of retail stores. All Brick and Mortar operations are struggling to stay both competitive and relevant in the face of the ever increasing popularity, of buying on-line. With deep assortments,lower prices, free shipping and liberal return policies the on-line stores have been able to hit them where it hurts.The ability to buy in the comfort of your own home without fighting traffic and dealing with poor management and surely sales people, seems like a win win to most people. Lets look at a sample of what’s happening .
Traditional Department Stores; This segment has been especially hard hit over the last twenty years, Macy’s has been in slow decline for years, closing 129 Stores since 2015, and now Lord &Taylor, the 192 year old company announced it’s closing 20% of it’s stores, with Abecrombie & Fitch closing 29 stores. Luxury items were the first segment to see the effect of on-line sales.
Promotional Department Stores; Sears continues to struggle announcing the closing of 80 more stores, with J C Penny closing another 140 stores. And recently Shopko announced they will be closing 70% of their stores. The ripple effect from luxury to now promo priced goods.
Discount Department Stores; Kmart announced closing an additional 284 Stores with Family Dollar announcing the closure of 390 stores. Even discounters can’t compete with on-line prices.
Specialty Stores; Have been especially hard hit. Children’s Place closing 300 stores, Payless closing 2500 stores,Gymboree 800 stores, Charlotte Russe 94 stores. Gap 230 stores, H & M 160 stores, even Starbucks announced closing 150 stores. Not to mention that Foot Locker, Toys R Us, and Baby R Us disappeared in 2018.
Warehouse Stores; Lowes closing 50 stores, and Sam’s Club announced they are closing 60 stores.
A fundamental Re-alignment
This isn’t by any means a complete list but I think that it highlights the fact that Brick and Mortar stores are not going through a minor shake out of under performing stores, but instead this is a fundamental change in the retail landscape. Experts predict 8,640 stores will close this year,and this change has been going on for years and looks like it will continue into the next five years easy.
Tech Over Takes Retail Industry
E-Commerce continues to take a larger piece of the Retail pie. 517 Billion in 2018 up a incredible 15% from the prior year. Vacant retail space has reached record highs across the country, driving down the price to lease, to an all time low. While bewildered CEO’s lament that they built to many stores, and were asleep at the switch, as internet shopping took off.
Hundreds of Thousands Displaced Workers
The question I keep asking myself is where are all these retail employees going? Not only the hourly associates but logistics, traffic, warehouse, buyers and management personnel. 89,000 jobs gone since October alone, with tens of thousands more on the way. Not to mention a lot of CEO’s who will never get hired again.
Network Marketing Offers a Solution
If you can’t beat them join them. Network Marketing is a logical next step for a professional retailer who has been thrown out on the streets. You only have to look at the massive explosion of Network Marketing (M.L.M) businesses over the last five years, to see that they are absorbing a lot of these displaced retailers. The industry has seen a 90% growth over the last ten years.
Control Your Own Destiny
Network Marketing is so varied in it’s product offerings, that it appeals to almost everyone, and has become a popular option for many of these displaced professionals, who want to take control their own lives and not be at the mercy of Corporate Retail, which has shown themselves to be greedy, short sighted, and terribly misinformed.
Why Are So Many Afraid
Not only do these professionals want self control of their own destinies, they want to control their own schedule, be their own boss, work from home and have unlimited income potential. The only industry that can give them all these things and more is Network Marketing. So why are so many professionals still skeptical about Network Marketing? see Why Boomers Get UberJobs There are a number of reasons, lets take a look at a few of them.
Say Multi Level Marketing to someone in their fifties or sixties and they immediately think scam. While the industry had a reputation problem in it’s infancy, recent years have seen a lot of changes. The clearest distinction between the scams and the legit businesses is in “the push” to sign on reps, as opposed to the actual selling of product. Often scams have hefty sign-on fees to become a rep and this is what fuels the Ponzi scheme. A legitimate model, by contrast, is one where there are incentives in place, to reward those who are actually selling the product to customers, rather then just to other reps in their down line.
High Failure Rate
The reason for the high failure rate in Network Marketing, is that most people don’t treat it like a business with deadlines, goals, action plans, budgets etc. Nor do they put in the work that it takes to build a sales and marketing business. It’s easy to be distracted working at home. They are often not teachable and don’t function well in a team environment. You won’t succeed if you only rely on your family and friends for your sales.
Believe in Your Product
It’s all about finding a product you believe in an marketing it. As you develop your social media skills and start finding customers, you will also find people that want to be more then just a customer. The beautiful thing about Network Marketing is that you do better when people you bring on do better. You have a vested interest in seeing them reach self-actualization.
Building a Network is Rewarding
Working on a simple model of finding three foundation team members, and then training them to find their three foundation members and so on, will quickly lead to a down line that creates a substantial residual income. The business is all about being in it for yourself but not by yourself. Network marketing is a business that develops you as a leader, and with success comes the confidence to take on larger and larger challenges as you push yourself to help more and more people.
As always, thanks for visiting. Dave