Sears Canada, one of the main retail jobs in the country released a statement declaring an uncertainty in continuing to operate beyond another year. That it is running low in cash and is caught up by competition from other chain stores and online retailers, says the classic department store. At this rate, Sears may need to sell its operations or readjust.
We could probably assume the most logical reason that Sears simply went off-track.
Their stores couldn’t simply keep up the pace. And their seemingly fashion-forward brands never earned the required label.
Then there’s the eminent fact that more businesses are going online. The company recently made a move to strengthen its e-commerce capabilities but was largely viewed as a late effort.
The truth of the matter is that in Canada’s retail landscape, the fact that some companies do things the right way doesn’t mean they are doing well.
Retail Company Target retreated two years ago and did leave around 18,000 low income Canadian workers jobless; a hit wave so big that it went through the entire Canadian economy, says Patterson.
According to statistics Canada, the number of retail jobs created by the Canadian economy between 2012 and 2016 rose to only 3.7 per cent, in contrast to the 4.7 per cent increase to the overall unemployment numbers in the same time frame. With the inclusion of auto dealers, which carry out brisk businesses as Canadians collect car loans obtained from the benefits of low interest rates.
This doesn’t make adequate sense, considering the fact that consumer spending fuels the economy.
Then again, in a country fully focused on real estate, the disposable income of lots of Canadians flows towards renovations.
Moreover, most consumers are increasingly spending more cash on tech gadgets and experiences than on simple things like shoes and clothes. As a result many retailers are left scrambling.