The slippery slope.
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My experiences of the retail business leaves a funny taste in my mouth. I have seen things that would make you cringe and grown men cry. I am sure some businesses are run like clockwork and you are lucky if the original owner is still around like in @blanchy's case.
The ones i have been involved with the owners have sold and are long gone. These businesses are now part of global empires which people call blue chip. These companies have grown so quickly that they have lost the plot. Squeezing and screwing suppliers to the point that they have crossed the moral line. Businesses who thought they were just too big are in for a rude wake up call. What happened in the rest of the world over the last few years is now happening here.
Most of the stock doesn't belong to them as the majority have taken accounts to 90 days. This wasn't normally the norm as it has moved from 30 days, to 60 days and now conveniently 90 days. If you calculate how they work they have 120 days before you get the first payment. Today they are running their empires on everyone else money and not their own. Suppliers and agents have become the banks keeping these businesses propped up.
Suppliers are now not accepting this and enough is enough now. I know of around half a dozen suppliers in the last few months who have walked away from these giants and are doing better now financially not supplying them. Bigger isn't always better and I can see more leaving their greedy clutches leaving them with fewer and fewer suppliers.
I have noticed over the last few years how their businesses have changed and less stores are being opened. Shopping centers used to pop up on a monthly basis and that has suddenly stopped. These stores got great deals for becoming an anchor tenant and some had free rent for two years. What I have noticed and it is gradually increasing even in backward South Africa is that online is becoming more important.
Food and clothes shopping hasn't changed that much yet as online don't offer the same deals as in store. The bigger items like appliances and sporting goods are all online today and these companies are cleaning up.The retailers missed something as free delivery should have been included on the bigger items , but they saw that as a profit making business on it's own.
Last Christmas one of the Blue chip retailers messed up horribly offering a special online and ran out of the product that was advertised causing total chaos. The reported figures were for a televison special and they oversold by 13 000 sets. They tried to placate the people by offering them a $10 voucher and they wouldn't accept it. This company has burnt their business as no one will try them again. The gold fish bowl is only so big and consumers talk so the 13 000 now becomes 130 000 who wont use them ever again.
Changing from a core retail business with shops to online is totally different and mistakes can't be rectified as quickly. Competing with the likes of Amazon and Alibaba is not going to happen and they will lose their dominance over time. I am happy that this is now starting to take affect as the wheel turns in business and if you don't change you will be left behind.
We have two online companies now which are fairly large. One is owned by Naspers and I know they don't really have a budget whilst they are getting things right. Amazon has offices here and are not operating just yet, but when they do the businesses are in for a huge shock.
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13k unfulfilled orders- Yikes! What could have been an overwhelmingly successful promotion.
I want to say that bigger entities are definitely not better but I am somewhat biased. All things considered.. I still say every oversized giant must fall, if not in this century, the next.
I am a few blocks from Azon HQ. Mixed feelings have set in. They have lost some popularity at home base over things that happen when you get Really-Big but it won't phase them. Service that never stops improving is almost everything. Once people in that part of the world get used to it..you know.
I hope that your small, personal service go-to guys / community icons can hold their ground. You know that it's going to hurt real bad.
As you've mentioned- relationships. Not many retailers do this right anymore but then, much has changed in how people consume. Can a website "know you"? - not in a meaningful sense, or anticipa.. oh well they do that in a way.. and fast delivery, product reviews, etc.. Now same day delivery. They employ many at fulfillment locations so that can save the day for some but wherever corporate settles, they dominate. Housing costs explode which enrich those in position to do so but natives are driven out and a homeless crisis will eventually ensue. They are not a sole influence of course but the largest one and they are calling the shots in this city. When local government seeks to address the resulting crisis, they veto with threat to vacate (wish they would) It becomes very bad news for A Lot of people.
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I remember back when online shopping became a thing. It was so crazy to buy whatever you wanted and it kind of didn't feel real at the same time because you were just magically buying stuff and then it showed up a week or so later. Then the credit card bill came and it was time for a reality check. I love shopping online now and unless it is something perishable or clothes that I need to try on, I rarely go into many stores.
I am the same as well now. I enjoy food shopping and obviously clothes you need to try on, but everything else can be done online. I can see the shops struggling come Christmas here as the consumers have changed their buying methods.