The Retail Crisis Continues – What Does It Mean for Trucking?
Another long-time retailer has filed for bankruptcy, dealing a big blow to the already-suffering retail industry.
More specifically, it’s brick-and-mortar retailers that are experiencing the problem. A combination of thriving e-commerce platforms and a change in the way consumers prefer to shop has caused several stores to falter. Despite having success at one point, these outlets are a shadow of their former selves in many ways.
Toys R Us is the latest company to show signs of trouble, filing for bankruptcy only days after analysts began saying the move was inevitable.
The company was once America’s top toy store, and it’s even more concerning that they made this move in the fourth quarter. Usually, the final months of the year mean big business as the busy shopping season comes into full swing. Toys R Us said they’d keep stores open, but the effects of their bankruptcy has affected other companies as well.
Stocks for big names like Mattel and Hasbro took a small dip as well after the news broke. Any time a company goes under, the companies that depend on it are pressured to adjust accordingly or suffer the same potential fate.
Just as the success or failure of one company can affect another, the same is true of whole industries. With more retailers struggling to stay afloat as shopping and economic trends change, what impact will this have on the freight industry?
Trucking has already seen the signs and made several adjustments to its business model. While some carriers have handled the changes better than others, the forward-thinking mentality trucking is known for came in very handy in this instance.
Trucking companies are already providing their services in new applications, working with online-delivery systems and customer-centric models as the old way of doing things quietly fades away.
Trucking will still feel the heat – retailers still account for a big portion of revenues in the freight industry. As commercial operators become more accustomed to servicing other big clients and doing their business in other ways, the impending problem with brick-and-mortar retailers will become less and less of an issue in commercial truck driving.