So why are major players in retail collapsing while others remain standing (at least for now). The buzz term 'customer experience' has become more and more relevant in recent years and includes direct and indirect interaction. The simple fact is indirect interaction - such as the internet and social media - has surpassed direct and many retailers have failed to embrace technology. Attention spans have become limited and customers walk out of stores empty handed, feeling as if they have wasted their time.
In 2018, the key to success in retail depends on the adaptability of retailers to market changes and customers needs. Blockchain technology could provide an answer, bringing brands and consumers together, building new rewards systems and providing for a more transparent supply chain.
According to the BDO survey 54% retail exes are harbingers of doom, tipping retail bankruptcy filings is being likely to stay at the same level as 2017, which already surpasses the "Great Recession" of 2008 which kicked off a global financial crisis. Crunching numbers, in 2017, up to 9,000 stores closed in US. Casualties in 2017 included Toys 'R' Us. Some of major players on this year's list include; the famous family-run department store Bon-Ton (a chain with 267 stores in 26 US states), Claire's (teen retailer) and Nine West (one of the biggest US shoe retailers), all are getting read to file, and there are many more at risk.
And it seems like there's no end in sight for this "retail apocalypse." For young designers and brands there is little future in cooperation with retail companies. It's a dramatic break-up, but more exciting things are to come with fashion and brand-focused blockchain platforms, that allows for the establishment of any business relations directly. Blockchain (like the Fashion Coin ecosystem) will bring the customers and the investors in the same field, so that everyone involved will benefit.
There are 2,300 stores in BDO's report, which are targeted for close down and it is more than in the second half of 2017. (That figure included retailers that planned to close at least 20 stores in the period.)