When companies stop innovating, they can find themselves replaced, and running out of customers. Here are some companies who are in this situation and the list may surprise you..
The world of retail can be cruel, and customers are fickle. No matter how hard a company might try, if they fail to innovate and anticipate their customer's needs, they can find themselves running out of customers.
Many people who work in retail have been shocked lately at the number of companies who haven't been able to compete during this recession. Companies like Borders and JC Penney, both of whom had built successful companies have found themselves in this very situation. According to the Huffington Post, here are 5 other companies who are running out of American customers:
- Best Buy – The leader in big box electronics has been struggling lately. After having reported a less than spectacular December, they are projecting a weak first quarter. They have recently introduced a Buy-Back program that might give them a boost in sales, but unless they do something, they will continue to lose customer's to Amazon.
- Nintendo – For awhile, the Wii outsold both the PS3 and the Xbox 360. Now that Sony has introduced Sony Move and Microsoft launched Kinect, Nintendo has lost market share fast. Although they are still making a tidy profit off of their hand held game systems, the DSI, the DSIXL and the new 3DS, it isn't enough to regain their market share.
- The United States Postal Service – The USPS is losing customers at an alarming rate. With stiff competition from carriers like FedEx and UPS in addition to the increase in email, faxes and data transfers, many people are finding reasons to skip the post office altogether.
- Wal-Mart – I am not a fan of the superstore, but it seems that Wal-Mart has gained such a large market share that they have no more room to expand. In addition, their bulk shopping club store, Sam's Club have been dealing with a sharp decline in customers. In fact, last year they closed 12 of their stores. Currently, Wal-Mart is facing stiff competition from retailers like Target and Amazon.
- Dish Network – Even though this company is still reporting a profit, it isn't because they are growing. It is just because each customer is paying more. In reality, Dish Network is shedding customer's faster than they are gaining new one. This may be due to a combination of customer's who just can't afford the service anymore and ones who have decided to go with less expensive packages from their cable companies.
What do you think about this list? Are there any that surprise you? Let me know in the comments.
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By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer for RetailGigsBlog. Along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.
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