JCPenney released a list of stores closing.
We are in a wind blown economy. What does this mean? The wind can shift at any moment and change the landscape. The consumer is the wind. The consumer has all of the power to shape the landscape and the unfortunate situation that has arrived is that the consumer is all about convenience and speed. That speed no longer requires them to leave their home, or head to destination locations to spend time browsing for what they are interested in.
This is a sneaker news site so obviously my discussion here is about sportswear and footwear, but this discussion pertains to every aspect of retail. The consumer is no longer conscious of how and where they spend, they are only aware of how quickly they want things to arrive and if they “think” they got the best price. It’s something I’ve been discussing for a long time and it appears the rest of the country is awakening to the reality of the situation.
The unfortunate reality is that those who think this disruption of the traditional retail space (big box stores, malls) is isolated to brick and mortar really aren’t paying attention. It’s happening to online only shops which is affecting small business people as well as large retail outlets.
A few months ago I saw news that Nike was setting up stores within JC Penney. I discussed this in the article below:
In this post I explained that Nike doesn’t really need JCP. Right now the stock market is reacting to Nike’s missed earnings but anyone who reads this site should realize I nailed the prediction of what would happen there. I will state once again that Nike is entering uncharted territory as a private label with more stores than the people they are selling to; and a stronger e-commerce platform for online DTC than any of the sportswear companies or retail outlets carrying their gear. Nike stock will climb back to the high 50s and crack the 60s by this fall.
The same can’t be said for JC Penney who could have an unintended effect on Nike’s numbers.
JCP is closing 14% of its stores. The stores seriously underperform, but if any of those locations had plans of launching Nike shops it will shape distribution. It’s not just JCP however.
Macy’s is closing 68 Stores, McSports is closing 68 and filing bankruptcy. These stores also carried Nike products. The Sports Authority bankruptcy shaped the market and was a harbinger. While JCP’s store closures probably won’t disrupt their Nike store launch, is Nike enough to save the other locations?
This site is primarily about sneakers so a detailed article is not in the cards, but if any reporter is reading this, maybe you should spend some time looking into these store closures and examining if the TSA situation is about to return on a smaller scale to further shape the sportswear market.