7 Reasons Why Traditional Retailers Are Struggling

One only needs to look at the headlines to see that many retailers are struggling. Let's clarify that ... a large number of traditional retailers are struggling to grow profitably. In addition to bankrupt retailers like Sports Authority, many others are closing stores. Yet, the "Beast from Seattle" continues to thrive ... posting double digit year over year growth, and now even quarterly profits.

Why is Amazon so successful while even the best traditional retailers are struggling? Many retailers need to take a hard look in a mirror to examine their historical baggage of the past and their failures to adapt to today's rapidly changing consumers.

Why this is important: Freud's definition of insanity is doing the same things over again and expecting different results. Doing more the same better won't be enough! Retailers need to rethink and reorganize their business from the inside out.

Retail insanity = the same things over again, expecting different results

As mentioned, Freud's definition of insanity is: doing the same things over, and over again and expecting different results. That definition pretty much describes the current state of many traditional retailers. Even the sales results of historically successful retailers like Walmart and Nordstrom's are soft. While it is tempting to blame the economy, the problems of why traditional retailers are struggling are not so simple to understand, and even more of a challenge to fix. Traditional bricks and mortar retailers are facing systemic challenges based upon their roots running stores that were successful in the past.

Fundamental issue: retailers are operating based upon product centric success

Traditional bricks and mortar retail was founded on the premise of the "store" being the destination location where people came to shop. Stores were (and are) "showcases," where you put products on display and sold things at a price. Success was based upon...

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