By Michael Briggin
Ever wonder why you aren’t getting enough customers? It’s not always because Amazon.com and Netflix are eating your lunch.
At the height of the dot.com era in the 1990’s, retail store chain companies such as Borders and Tower Records had a web presence and were popular name brands for customers alike. However, years later after the dot.com boom ended arrived the bad news:
Borders Bookstore Chain to Shut Down
As expected, the bankrupt Borders Group will be liquidated after it failed to find a last-minute suitor to save the 40-year-old bookseller, The Wall Street Journal reports.
The company announced this afternoon that it will ask a federal judge on Thursday to approve the previously announced sale to liquidators led by Hilco Merchant Resources and Gordon Brothers Group. Liquidation of Borders’ 399 remaining stores could begin by Friday, leading to the loss of about 10,700 jobs. What was the second-largest book chain in the United States will no longer exist by the end of September
Tower Records, a venerable but bankrupt chain of more than 90 U.S. music stores, including two in Seattle, is going out of business after its sale Friday to a new owner.
A federal bankruptcy judge approved the sale of the Sacramento, Calif.-based company at auction for $134.3 million to Great American Group, a Los Angeles liquidation firm.
Peter Gurfein, a lawyer representing the 46-year-old chain, said it will be sold for a total of $150 million, including the sale of various leases and properties. Gurfein said Great America plans to begin the liquidation and going-out-of-business sales today.
What are the two key issues which led to both Borders and Tower Records corporate headquarters’ demise and the shutting down of all their store locations?
- Not adapting quick enough to optimize their websites
- Lack of Innovation
- Sticking to old business models and not revisiting them on an ongoing basis
Lesson learned: It’s more than meets the eye when you are facing your competition.
Always emphasize an effective, holistic marketing strategy so you can penetrate your target market. Every business has different needs and wants but by leveraging customer data, technology and proactive ways of engaging your customers as quickly as you can without waiting until the last minute, you’re better off than you were before.