Finance & Accounting

Lessons for Small Businesses from the Decline of Myer and David Jones

Many articles and news stories later, department stores Myer and David Jones are still making headlines as the question lingers “Will the department stores be around in 10 years time?”

So, what is the cause of the downturn for department stores?

With the evolution of online shopping, it comes as no surprise that shopping habits have significantly changed over the years.

The downturn of department stores spreads far greater than Myer and David Jones. Retailer Big W has also begun to close 30 underperforming stores. Internationally recognized US store Barneys has also been rumored to be on the edge of bankruptcy as well as British Retailer Debenhams with reports of a possible collapse next month.

It’s not just department and clothing stores that have been majorly impacted due to the evolution of technology. With the introduction of Uber Eats, the food industry has been turned on its head.

We have gone from a few select takeaway restaurants such as Domino’s and Pizza Hut being the only takeaway restaurants to deliver, to having any type of cuisine delivered to your door at the click of a button.

What can you learn from this?

Be adaptable
It’s Sunday morning, you have slept in until 10:00 am. You grab your phone for a scroll through Instagram and all you see is every second photo being of breakfast food. And not the full English breakfast with a long black extra shot coffee that your craving after the 12 beers you sunk the night before. But acai bowls, beetroot lattes and avocado on toast with a sprinkle of feta. An overpriced, un-filling breakfast for you, but an “Instagrammers” heaven. Not to mention they will pay good money for it too.

It is important for you to adapt to market trends and what sells. Sticking to what you know isn’t going to allow you to settle into an early retirement.

Use technology to your advantage
Online shopping has caused the demise of giant retailers due to the changing shopping habits of consumers. Major food delivery stores have also seen a decline in customers since the arrival of Uber eats.

In a world that wants everything at the click of their fingertips, the success of your business relies heavily on taking advantage of the technologies available to you.

If you’re not on Uber eats or sharing your “Instagram worthy” breakfasts on your business page, it is unlikely that customers will find you. We are living in an age where you reach for your phone to look up recommendations for just about anything.

It’s not just food and retail that are making the switch to online platforms. Many companies are using the technologies available to them. Whether you’re a small business tradie using apps to communicate with larger companies for job measurements, creating virtual mockups for jobs or using internal company apps to keep track of your timesheets etc. If your business isn’t tech savvy, it is likely that your business won’t have the success you’re hoping for.

If your business is not down with the times, click here to contact Power2. We can assist you in ensuring your business receives accurate and relevant advice to ensure your business progresses with the evolution of technology and market trends.