Monday, January 05, 2015

It's not just the 'Mom and Pop' that's disappearing.

If you were one of the unfortunate souls who spent any amount of time out Christmas shopping these last few weeks, you would think that Canada’s brick and mortar retail business was booming. Elbow to elbow shoppers at local shopping meccas and seemingly endless sales would lead one to believe that everything is hunky dory in the land of your neighborhood merchants.
That’s not quite the case.

Aside from the Black Friday and Boxing Day madness that has happened the last few years, the reality of the current retail situation in Canada is that a large number of businesses are hurting, and we’re seeing the way in which Canadians spend their money changing right before our eyes.

Working as a sales manager of a retail establishment, I have begun to see firsthand how many people have begun to move away from actually leaving their homes to do their shopping. With many purchases only a click of a mouse away online, what incentive do most shoppers have to leave the comfort of their couch anymore? 

If you need evidence of how poorly some sections of the retail sector are doing in this country right now, look no further than Target Canada. It was just over a year ago that the US giant made its way north with the promise of great products at low prices – with serious talk being thrown around that they would unseat the king of the retail mountain, Wal-Mart in no time. After losing an estimated $1.5 billion since they opened their first store in this country, their plans for northern domination have turned into a great white gaffe.

Sears Canada, a staple of this country for longer than any of us have been around, is bleeding money right now with layoffs in the thousands and store closures seemingly every time you turn around. The Chicago based headquarters for Sears has seriously considered selling off the Canadian retailer to interested parties, but there are none. Save that yearly Christmas Wish Book because it may soon be a collector’s item.

Best Buy Canada, Reitman’s, Chapters and many more businesses are on the list of other Canadian retailers that are in danger as 2015 begins. These are stores that have been part of the retail landscape of this country for longer than I can remember, but dwindling sales are leading to more and more speculation about their futures. Is the abandoned mall that is cropping up with increasing frequency all over the United States destined to creep north into Canada? It seems like it very well may be.

So why is this happening? Surely lower prices and convenience are factors, but I don’t think they’re the biggest ones. I think a big part of the problem is that many organizations need to start focusing on the skill of customer service again because it is truly a dying art with many companies. I can count the number of times I have had exceptional service from a retailer on one hand in the last year, and I don’t hold out a lot of hope for 2015. Mediocrity has almost become exceptional in today’s marketplace because bad service is so commonplace. ?

I come from an old school mentality of a consumer who would gladly pay a few dollars more for an item in a brick and mortar store if it’s backed by top notch customer service delivered by an expert selling me the product.  Is it any wonder, though, that many people would prefer to shop online rather than deal with disinterested employees who often times know nothing about the products they expect you to buy from them?

A perfect example of this is the fact that I ended up ordering my wife’s Christmas gift online this year after three local merchants that sold the product (that I knew nothing about)  all gave me a response along the lines of “I haven’t the slightest clue” when I asked them to guide me in a purchasing decision. Their suggestion was that I do my research online. Talk about a self-fulfilling prophecy of extinction!

I, for one, don’t want a future where I can’t go into a store and hold a product in my hands before spending my hard earned money on it. By the same token, I’d like to know that I’m valued as a customer when I do purchase something from you. It’s not rocket science, but I’m amazed by how many companies just don’t seem to get it.

Maybe the change is inevitable. Perhaps we’re destined to move toward a predominately online marketplace where the human element is all but eliminated and people become even less social than we are now. There’s the distinct possibility that I’m just an old fogey who is digging my heels into the ground as I fight against a tide that is sweeping in with or without me.

Either way, you have to wonder where people are going to get the money to patronize these online monolithic companies when, faster that you can double click, we’re eliminating the jobs of the people who used to sell us these things.

Put that in your cart and ponder it.

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