Why do street shops have little business but don t go out of business?

Although these stores do not have much business, these stores actually cooperate with some big customers, because the profits are still relatively considerable, and it has not closed down.

Because these street-side shops have some business when there are many people and the largest number of people is dense, they have accumulated some capital in the early stage. So there was no collapse.

It is normal that a brand cannot have only one store, and most of these stores are chained, so they will not go out of business easily.

In the past, we walked on the bustling streets, and the roads were full of ** surging, and there were merchants shouting, which was really a prosperous scene. Nowadays, there are few bricks on the road, and physical stores are either discounted or closed, and the scene has long been gone. Some people say that this is the fault of the rise of e-commerce!

Some people believe that this is due to the current economic downturn, so why is there such a large-scale "wave of bankruptcies"?

Nowadays, if you open a small physical store in Shanghai, the rent of the store will be as high as more than 10,000 yuan. If you add water, electricity, gas, and the wages of shop assistants, it is not only difficult for merchants to make money when doing physical stores, but they are also likely to lose money. E-commerce companies are different, they don't have to pay rent, they just need to rent a room and store some inventory goods.

Obviously, brick-and-mortar stores lose their competitiveness in renting, and if they lose money for a long time, they will only close down.

In the past, opening a clothing store, a small supermarket, and a hardware store had less competition in the same industry, and it was easy to survive. And now, as long as you walk around the street, there are too many such physical stores, and they are all operating in a homogeneous manner, and they are not distinctive. The number of shops is four or five times higher now than it was 10 years ago.

At the same time, several large-scale business district complexes have opened on the more lively roads in many cities, which are attracting businesses from all walks of life to settle in, and the local ** volume is not so much. As a result, shops that could not compete had to close their doors.

Since the beginning of 2020, due to the impact of the new crown epidemic, some people's income has begun to decline, their spending power has weakened, and their desire to shop is much less than before. The continuous emergence of the epidemic has reduced people's desire to go shopping, under the superposition of multiple factorsIn addition to restaurants, pharmacies, vegetable stores and other places that people need to consume in their daily lives, other places that can not be visited are no longer visited。This is also the reason why a large number of brick-and-mortar stores are closed.

The goods sold in physical stores are higher, and e-commerce has no rent, no intermediate links to make the difference, and can run the volume, so the goods sold by e-commerce online will be much lower, and e-commerce can also take door-to-door delivery, seven days no reason to return goods and other ways to attract young consumers to shop online. In this case, the competition of physical stores will definitely not be able to do e-commerce, and you can only choose to withdraw.

The closure of brick-and-mortar stores is due to multiple reasons. In addition to the increasing rent, there is also fierce competition in the same industry, not to mention the impact of the new crown epidemic, people's spending power and shopping demand have declined. Of course, brick-and-mortar stores are also being hit by e-commerce and the emerging live shopping.

What is certain is that as long as the rent** has been rising and the e-commerce live broadcast continues to impact, more and more physical stores will close in the future, which is also a big trend.

Because the products in the physical store are not transparent, compared with e-commerce, the same product is much more expensive, and there are not a few people who have been cheated by physical stores before. With e-commerce, people are buying things online. The business of brick-and-mortar stores is naturally poor, and many stores close their doors if they can't make money.

Why are more and more brick-and-mortar stores "closing"? Second, the competition among peers is fierce. 3. Since 2020, due to the impact of the new crown epidemic, income has declined, consumption power has weakened, and shopping desire has declined. Fourth, the rise of online shopping and e-commerce.

Because now is the era of "Internet", people can buy their favorite goods or food without leaving home, and now they can't just do it without linking it to the Internet, and many merchants buy their own goods online.

In today's society, many people who have entrepreneurial ideas also have scruples about the real industry, and they are not easy to invest heavily in opening stores, but many small online projects are developing well. Recently, I saw a message from a brick-and-mortar store owner, saying that the pedestrian street near his company would close more than 30 stores within a year. Even those brick-and-mortar stores that are still in store are facing closure, barely making any money, and the business is too difficult to do, I wonder if the brick-and-mortar stores will be better next year?

Those who have done physical business know that it was difficult to rent a façade in a place like a pedestrian street, even if you have money, once there is a hint of transfer, you can rent it out immediately even if the price is increased. But now the pedestrian streets in many cities are already very deserted, and some shops cannot be rented out for half a year. From the perspective of a brick-and-mortar store owner, no one wants to rent even if you have a good location, but you can't make money.

So, why is it so difficult to do a brick-and-mortar store? The author thinks:

Clause. 1. It's hard to make a difference.

In fact, it is not difficult to make a physical store, but it is difficult to stand out from the same type of store. Generally speaking, there are several main reasons for the closure of physical stores. 1. I like to follow the trend to open a store.

Many people who have a little capital and want to start a business generally follow what they see and do what they do, and when there are more people doing it, the competition is bigger, and the business will naturally be poor. 2. Relatively expensive. Now many customers don't want to go to the physical store, mainly because they are afraid of being pitted, if the store is not attractive, do not often engage in activities, accumulate popularity, and it is difficult for the physical store to do it for a long time.

3. The service is not very good. Some brick-and-mortar stores hire employees who have no sales skills and poor service, and it is difficult to maintain.

Clause. Second, the impact of **.

Although the poor business of physical stores has the boss's own reasons, there is still a certain impact on things like **, Pinduoduo, etc.**. However, the cost of opening a ** store is not lower than that of a physical store, and there are a lot of various promotion expenses, which is actually a good thing for the real sun bold store. The cost has come up, and the profit is lower than that of the physical store, and the customer is paying more and more attention to the experience of the product, and the physical store should still be good in the future, but it is difficult to say whether it can stick to it.

Personally, I think that if the brick-and-mortar store business wants to make money, the boss of Xunzhu must be flexible, and he can no longer wait for customers to come to the door as in the past, but try to attract customers to the store, and then retain customers.

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First, the location of the store is good.

Generally speaking. Stores that are taken over are generally located in relative directions.

Well, the direction is better than the amount of the answer is very much, which also saves the cost of advertising, as long as you take over the same product before the bad one, you can successfully attract consumers, if the boss is uniquely positioned, know how to cultivate consumers' consumption habits, business is booming.

Second, the combination of online and offline.

Now there are people who have stores, are a combination of online and offline, although the impact of e-commerce on the real economy is relatively large, even if they open stores even if the business is not good, as long as the success of online is done, it can naturally drive offline business, many not only do **, they also do micro-business, through multi-platform drainage, the implementation of their own products, but also can bring a lot of income.

Thirdly, there are considerable transfer fees.

Now some shops are closed, the cost of transfer is relatively low, this time to take over is more cost-effective, even if one day can not do it yourself there is no contact, because there is a transfer fee, this is also a lot of income, as long as the location of the shop is good, do not worry about no one to rent, there are many people who want to start their own business.

In fact, as long as it is a business person, they will be very shrewd. They calculated their gains and losses very clearly, they only had to take over and make careful preparations, and they only needed to open to make money.

I have a 6-year-old lighting shop transfer, new decoration, stable business (annual net profit of about 200,000 yuan) back, suitable for two people to operate, one in the answer to the store with a child is responsible for the installation, the daily business hours are short and relaxed, free, the boss with ideas can contact me for field visits. Novice bosses who don't know how to do it can take it for a while.

This question is complicated, my hometown is a small town, and we also have the situation you mentioned, and I have also thought about it.

1. There are special consumer groups, for example, civil servants are designated to consume, and there is no profit (this is the leader's brother-in-law opening a store);

2, this store is its own, it doesn't need rent, it is open when it is open (this is that you don't care if you have money);

3. Special consumption periods, such as winter, before the Spring Festival, or nightclubs;

4. Image store, generally made by large companies or enterprises to promote their own brands;

5. Violence, enter low and sell high. For example, an optical store.

6. Small business, even if it is a loss, you have to do it, at least there will be cash flow every day. Opening a store may make money, but not opening a store will inevitably be empty.

Hope it helps.

You can't watch it 24 hours a day... Business is divided into time periods.