10 Companies We Lost In The Last Decade

Summary

The video outlines the downfall of iconic retail brands over the last decade, from Payless to Toys R Us, illustrating the impacts of poor leadership, shifting consumer habits, and fierce competition. These companies once dominated their industries but struggled to adapt to modern trends, with many falling due to factors like online retail growth and changing market preferences. Despite their closure, some brands, such as Blockbuster and Toys R Us, still see nostalgia-driven attempts at revival, highlighting the potential for a comeback in the future.

Takeaways

• 😀 The retail apocalypse has led to the downfall of many once-popular brands over the past decade.
• 😀 Payless, once the largest family-owned footwear chain in the US, filed for bankruptcy twice and closed all its stores by 2019.
• 😀 Blockbuster, at its peak, had over 9,000 locations globally but couldn't compete with streaming services like Netflix, leading to its bankruptcy in 2010.
• 😀 Borders, a major book retailer, failed to adapt to the digital age, losing to online retailers and e-readers like Kindle, and closed in 2011.
• 😀 Sports Authority, once the largest sporting goods retailer in the US, filed for bankruptcy in 2016 and closed all stores due to competition from Dick's Sporting Goods and Amazon.
• 😀 Charming Charlie, a popular accessories chain, filed for bankruptcy twice and eventually closed all its stores by 2019 due to declining physical retail traffic.
• 😀 Gymboree, a high-end children's clothing brand, went through two bankruptcies and ultimately closed its 800 stores in 2019 due to poor sales and high competition.
• 😀 A&P, the largest grocery chain in the US from 1915 to 1975, couldn't adapt to changing consumer preferences and filed for bankruptcy twice, ultimately closing all its stores in 2015.
• 😀 Wow Air, a budget airline offering cheap flights to Europe, ceased operations suddenly in 2019, leaving passengers stranded and significantly affecting Iceland's tourism industry.
• 😀 Henri Bendel, a luxury fashion brand with a rich history, closed all its stores in 2018 due to relevance loss and profitability issues, despite its iconic past.

Q & A

What was the main reason behind Payless' downfall?

Payless struggled with rising competition from discount retailers like Target and Walmart, as well as online platforms like Zappos, which led to its decline. The company's inability to keep up with these competitors ultimately resulted in it filing for bankruptcy and closing all of its stores.

What happened to Blockbuster that led to its bankruptcy?

Blockbuster failed to adapt to the digital shift in movie rentals, with Netflix, Redbox, and video-on-demand services quickly gaining popularity. A combination of poor leadership and increased competition resulted in Blockbuster's bankruptcy in 2010, and its remaining stores were eventually closed.

How did Borders' failure compare to its competitors like Barnes & Noble?

Borders failed to adapt to the rise of digital books and e-readers, such as the Amazon Kindle and Barnes & Noble's Nook, which contributed to its downfall. The company also focused on expanding brick-and-mortar locations instead of strengthening its online presence, while competitors like Barnes & Noble thrived in the digital age.

Why did Sports Authority go out of business?

Sports Authority couldn't keep up with competition from higher-end stores like Dick's Sporting Goods and struggled to adapt to the rise of online shopping. After filing for bankruptcy in 2016, the company closed all its stores due to mounting debt.

What led to Charming Charlie's closure?

Charming Charlie faced a decline in physical store traffic, which resulted in its bankruptcy filing in 2017. Despite restructuring efforts and briefly emerging from bankruptcy in 2018, the company ultimately failed and closed all its stores due to continuing financial struggles.

What caused Gymboree's bankruptcy issues?

Gymboree faced financial difficulties after a private equity firm bought the company and expanded aggressively, opening too many international stores. This rapid expansion proved unsustainable, and the company filed for bankruptcy in 2017, closing hundreds of locations. Despite a brief recovery, Gymboree filed for bankruptcy again in 2019.

What led to A&P's decline?

A&P struggled to modernize its stores and failed to keep up with specialized grocery chains like Whole Foods and Trader Joe's. The company's outdated infrastructure and poor customer service, combined with the Great Recession, led to its eventual bankruptcy and closure of all its stores by 2015.

What factors contributed to Wow Air's sudden shutdown in 2019?

Wow Air's sudden collapse was attributed to rising fuel costs, declining tourism to Iceland, and the airline's struggle with profitability. After years of financial difficulties, the airline ceased operations in March 2019, stranding hundreds of passengers and significantly impacting Iceland's tourism industry.

How did Henri Bendel's brand lose relevance over time?

Henri Bendel, once a pioneer in luxury fashion, eventually lost its appeal to modern consumers. Despite its early success and historical significance, the brand failed to stay relevant in a rapidly changing retail market. In 2018, L Brands decided to close all Henri Bendel stores due to the brand's ongoing financial losses.

What was the main reason behind Toys R Us' decline?

Toys R Us' decline was primarily due to changing consumer preferences, outdated stores, and competition from big-box retailers like Walmart and Target. Additionally, the company's growing debt load hindered its ability to invest in its future. After declaring bankruptcy in 2017, Toys R Us closed all its stores, though it later attempted a comeback under new ownership.