The Benefits And Challenges Of Operating Pop-Up Stores

For those in the retail industry, in which consumer confidence is critical, a recession can drive revenue plummeting. Consumers struggling with fears of job loss, depleted income, increased debt, or other financial concerns, will spend less in stores on luxury and non-priority items. The longer the recession, the tighter consumers cinch their belts. For retailers, effective response to these circumstances is critical.

Retailers Respond to Recession

Faced with a dismal economic climate many retailers simply go out of business, leaving behind shells of their former existence. Estimates indicate that nearly 10% of all malls in the US today will close their doors due to lost lease customers.

For some, bankruptcy is an option that deals with the burdens of debt, while allowing for expected emergence from insolvency, though this is not always the case. Many recent, highly publicized retail bankruptcies resulted in complete shutdowns, most notably, Circuit City and Linens n’ Things. Though closing stores may appear the easiest method of saving money, it simply results in the loss of opportunity to gain revenue.