Talk about the closure of many stores at the beginning of the year.

In the past, we walked in the bustling streets, where people were surging and vendors were selling. It's a bustling scene. There are few people on the road now, and the physical store is either discounted or closed down, which has long since disappeared. Some people say that this is caused by the rise of e-commerce Some people think that this is caused by the current economic downturn, so why is there such a large-scale "bankruptcy tide"?

First, house prices have gone up, and rents have also gone up. Now if you just open a physical store in Shanghai, the store rent will be as high as 1 0,000. If you add the wages of water, electricity, coal and shop assistants, it is not only difficult for businesses to make money, but also likely to lose money. E-commerce is different. You don't have to pay rent, just rent a room to store some goods in stock. Obviously, physical stores have lost the competitiveness of renting houses. If it loses money for a long time, it will only go bankrupt.

Second, the competition in the same industry is fierce. In the past, clothing stores, small supermarkets and hardware stores were less competitive in the same industry and easy to survive. Now, as long as you stroll around the street, there are too many such physical stores, all of which operate in the same way and have no characteristics. At present, the number of shops is four or five times more than that of 10 years ago. At the same time, there are several large business circle complexes on the busy roads of many cities, which are attracting businesses from all walks of life, but the local people flow is not so much. As a result, shops that cannot compete have closed down.

Third, from 2020, affected by the COVID-19 epidemic, some people's incomes began to decline, their spending power weakened, and their shopping desire was not as good as before. The persistence of the epidemic has reduced people's desire to shop. Under the superposition of multiple factors, in physical stores, except restaurants, pharmacies, vegetable shops and other places that people need to spend in their daily lives, other places that cannot be visited will not be visited. This is also the reason why a large number of physical stores are closed.

Fourth, in terms of commodity prices, physical stores cannot compete with e-commerce. The price of goods sold in physical stores is higher. Because there is no rent and no intermediate link to earn the difference, e-commerce can also run away and attract young consumers to buy online. Therefore, the price of goods sold by e-commerce online will be much lower, and e-commerce can also deliver goods to the door. There is no reason to return them for seven days. In this case, the physical store competition will definitely not be able to do e-commerce, and you can only choose to quit.

Fifth, young people have no time to go shopping. Nowadays, young people have to work overtime because of their busy work, work under the 996 working system, and sometimes play mobile phones or games, so they don't have much time to go shopping. They often choose to shop online. At the same time, in recent two or three years, because of the rise of online celebrity live delivery, people can see what they need to buy more intuitively through live video, so the craze of online shopping for young people has begun to be stimulated again. This made the business of the physical store go from bad to worse, and finally it could only close down.

To sum up, the closure of physical stores is caused by multiple reasons. In addition to higher and higher rents, the competition in the same industry is also fierce. In addition, due to the COVID-19 epidemic, people's spending power and shopping demand have declined. Of course, physical stores are also impacted by e-commerce and emerging live shopping. What is certain is that as long as the rent price keeps rising and the e-commerce live broadcast continues to impact, more and more physical stores will be closed in the future, which is also a general trend.