Today Blockbuster announced that it was shutting the doors on 300 big boxes in U.S. That’s a further 35% of its footprint.
This is the inevitable and slippery slope of incumbent retail stores that cannot support business-as-usual.
The opportunity is tremendous for a company that can enter the mall with a pure showrooming business model. A company that can curate purchase into the cloud and capitalize on co-opt budgets.
Blockbuster, Barnes & Noble, Best Buy and other mall staples find it hard to innovate-from-within for two fundamental reasons:
- It has to continue to support its existing infrastructure to the bitter end and this is a costly distraction.
- It cannot effectively connect and curate its legacy cloud store and bricks store and make the two a seamless experience for the shopper.
Showrooming is shutting these leviathans down.
The new mall is going to be a challenging space for mall owners. Stores like Blockbuster, Best Buy and Barnes & Noble represent a mall entertainment experience. Now that shoppers browse but do not buy, these stores can not support their weight. The stores exiting will leave the mall a lonelier place.
Mall owners need to be a proactive. They need to innovate with their retail footprint. They need to look to partners that have a vested interest in the future of the mall and can provide new technology (such as Samsung). They need to innovate and fundamentally remodel the way consumers shop and more importantly “engage” in the mall.
Read full article at: Mobile Commerce Daily