What's happening with retail?
The retail landscape has undergone a seismic shift in recent decades, leaving many stores and services struggling to survive. Iconic brands like Blockbuster, Toys “R” Us, and Sears have shuttered or drastically downsized due to the rise of online shopping and shifting consumer habits. Department stores that once anchored shopping malls now face extinction, while smaller specialty retailers struggle to compete with the convenience of e-commerce. Even major chains like Bed Bath & Beyond and JCPenney have seen widespread closures. The decline of brick-and-mortar retail is undeniable, as convenience and speed drive consumers toward online platforms.
While many stores are disappearing, some sectors remain resilient. Liquor stores and dispensaries, for example, thrive due to strict regulations that limit online sales and the steady demand for their products. Hardware stores like Lowe’s and Home Depot endure because they cater to DIY enthusiasts, contractors, and homeowners who need immediate access to tools and materials. The tactile nature of these products and the expertise offered by in-store staff provide value that online shopping cannot replicate.
Mail services, including USPS, UPS, and FedEx storefronts, are another segment that remains vital. As online shopping grows, so does the need for package shipping and returns. These locations have adapted by offering not just mailing services but also printing, packaging, and even retail for office supplies. Combined with their integral role in both personal and business logistics, mail service providers are unlikely to disappear.
Service-oriented businesses such as massage parlors, nail salons, and barbershops are also thriving. These sectors rely on in-person interactions, offering tactile and personalized experiences that cannot be digitized. Similarly, fitness centers and yoga studios, while facing competition from online workout platforms, continue to attract members seeking community and specialized instruction.
At the same time, experiential and niche retailers are finding ways to survive. Outdoor stores like REI and Bass Pro Shops appeal to recreation enthusiasts with tailored advice and immersive showrooms. Secondhand stores and thrift shops, like Goodwill and The RealReal, are booming as sustainability and affordability become more important to consumers. Even small bookstores and vinyl shops are carving out a niche by focusing on local engagement and unique offerings.
The retail industry will likely never return to its heyday, but pockets of opportunity remain. Businesses that emphasize personalization, community, or hands-on experiences are finding ways to endure. As traditional shopping malls fade, a new era of adaptive, service-focused retail is emerging.
AP News, Reuters, The Wall Street Journal, Forbes.
