Photizo: Less Entity Stores Means More Online Opportunities

According to Photizo, a handful of Big Box companies plan to shut entity stores around the U.S., which implies more sales opportunities online.

As RecyclingTimes reported on March 7, Staples will close 225 stores, representing 12% of its North American stores. Photizo says Radio Shack is also planning to close 1,100 stores, up to 20% of its stores in U.S.; and J.C. Penney is closing 33 stores. The researcher predicts that Office Depot, Kmart and Men’s Warehouse will probably make similar announcements.

The mainstream view is that online sales have caused these Big Box retailers to close entity stores. Half of the revenue at Staples stems from online sales now. For stores like Radio Shack, the “showrooming” effect is a big problem where potential customers come in to try out the products, but end up in buying online.

Nevertheless, Photizo says a recent article in CNN points out that “online purchasing is not causing these closings, but rather it is simply making other problems worse”.

The researcher opines companies ignoring the shift to online purchasing will have to struggle for survival. Analyst Abbie Mantor said, “For the broader managed print services space, online strategy must play a role in the sale and distribution of products.” And she wonders which company will be the first to flourish in this sector.