Survival, at least in the retail sector, requires change. What worked just a few years ago may now be a recipe for failure.
It's easy to blame online sales for this, but the reality is that debt, not Amazon, has been the key factor driving companies out of business. Major players like Bed Bath & Beyond, Pier 1 Importers and Toys R Us may have lost business to the online giant, but it was the inability to pay suppliers due to their large debts that forced them out of business. .
Related: Popular clothing retailer closes all of its stores unexpectedly
In many cases, traditional retailers have prospered, especially chains like Walmart and Target, which have adopted an omnichannel model. Digital sales are, of course, important, but they haven't devastated in-store sales as many people think.
“Total e-commerce sales for 2023 were estimated at $1,118.7 billion, an increase of 7.6 percent (±1.2%) from 2022. Total retail sales in 2023 increased by 2, 1 percent (±0.4%) from 2022. E-commerce sales in 2023 represented “E-commerce sales in 2022 represented 14.7 percent of total sales,” according to US government statistics USA
Digital sales matter, but 15.4% means the vast majority of retail sales are still made in physical stores.
Image source: Guitar Center
A century-old chain makes a difficult decision
You would think that most people would want to play a musical instrument before purchasing it. Despite this, one of the giants in the sector, Guitar Center, filed for Chapter 11 bankruptcy in 2020.
It survived that process and continues to operate. Now, one of his main rivals, Sam Ash, has decided to take steps to ensure his own financial health.
Sam Ash, an iconic chain that first opened in 1924, has built its business around brick-and-mortar stores,
“Our motto is Come in And Play. Yes, we would love for you to buy, but most importantly we want you to have an experience. Music and musicality are exciting and exciting, and we are happy to be able to live a special part of that journey ” the chain shared on its website. “Visit any Sam Ash music store at any time and you are guaranteed to see someone making music. Playing the incredible selection of instruments is not only permitted, but encouraged.”
That's a good way to encourage musicians and boost instrument sales, but Sam Ash has decided to close many of its stores, including its main location in Manhattan, as well as one of its oldest stores on Long Island.
Sam Ash closes 18 stores
Prior to its decision to close many of its stores, Sam Ash operated 44 locations in Arizona, California, Connecticut, Florida, Georgia, Illinois, Indiana, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Tennessee, Texas and Virginia. .
The company did not take the decision to close stores lightly.
“Over the past 100 years, Sam Ash Music has successfully adapted to meet the challenge of changing business conditions. Looking ahead to the next 100 years, the company must continue to adapt to ensure its continued success,” said Sam Ash. amNew York Subway.
The company, which also sells through its website, wanted to make it clear that it is not abandoning physical stores.
“Sam Ash Music remains committed to maintaining a strong physical store presence in the future as we continue to grow our successful online sales offering. As part of this restructuring, the company will close several stores across the country. “This restructuring is emotionally difficult, but we are confident that these moves will strengthen Sam Ash Music as we continue to serve the music community in the future, as we have for the past 100 years,” the network shared.
Liquidation sales have begun at affected stores, but the company has not shared specific closing dates.
