The retail world has had its ups and downs over the years. However, there has been nothing like what’s going on today in terms of eCommerce’s impact on brick-and-mortar retail locations.
In the past, retailers could rely on trying out new promotions or perhaps moving locations to boost sales strategies. Clearly with Macy’s, JCPenney and Sears announcing various store locations shutting down and potential bankruptcy filings, this likely isn’t something that will continue to work at the rate that it once did.
One of the latest retailers to fall victim to the competition of the eCommerce giants is women’s clothing store Bebe. Some are saying that it may be the next retailer to file for Chapter 11 bankruptcy. This week, Bebe announced its hiring of financial advisor B. Riley & Company alongside a real estate advisor to discuss future options.
An option that the retailer is weighing at the moment, according to some reports, is that Bebe may be moving its entire operations to the online world to help avoid bankruptcy land. With 168 locations in 21 countries, Bebe has lost nearly $200 million in the past four years and has been trying its best to get out of retail space leases.
Given the popularity of high-end secondhand shops that are likely competing with Bebe, like threadUP and SnobSwap, moving fully to the eCommerce world may be the best route.