Department stores aren’t the only ones struggling. Shopping habits have shifted as consumer preferences have changed.
Here are five reasons why:
1. They’ve devalued their brands with constant discounting, which kicked into high gear at the start of the Great Recession.
2. They’re located in malls, which are not the hot shopping destination they once were.
3. They’re losing their most profitable brands, such as Ralph Lauren and Michael Kors, which are pulling out and, in some cases, opening stores of their own.
4. The middle-class population that used to sustain department stores is disappearing. Those families, now earning less, are turning toward discount retailers such as Walmart.
5. Consumer tastes and expectations have also changed drastically, in favor of fast-fashion retailers and open-air retail plazas built around stores like Kohl’s and Target.