Retailers that may go bankrupt in 2020
Chuck E Cheese
Family restaurant chain - 610 locations
known for terrible food
now selling food on uber eats under a different name
only attracts families
Advice:
improve the menu
attract teens and adults
cartoon / movie with their characters
AMC Entertainment
Largest theatre chain in the world - 661 theatres in the US, 224 theatres in Europe
Plan to reopen at 30% capacity (to gradually rise to 50%)
The CEO said:
masks will be available for $1
customers don’t have to wear masks
To survive they must convince customers to come on weekdays
How can they attract customers on weekdays?
Should they increase prices?
Brooks Brothers
Suit maker - 244 stores in the US, 70 stores overseas
“Made in America” so almost all Presidents have worn their suits (Lincoln, Obama, Trump, Clinton, Bush)
Japan is the 2nd biggest market
Why are sales falling?
Coronavirus impact
relaxed dress codes
Should they close their American factories?
Guitar Center
Largest musical instrument retailer in the US - 280 locations
Why have sales been falling for years?
number of guitar makers higher than ever
showrooming
Locations and stores feel unfriendly for beginners, women and children
Guitar sales have fallen by 1/3 in the last 10 years. Why?
electronic music, hip hop
lack of young guitar heroes (except Taylor Swift, Ed Sheeran?)
How can the company recover?
music school above stores
youtube lessons, music learning apps may increase instrument sales
display instruments from famous bands in stores
LA Fitness
Gym Chain - 690 locations in the US and Canada
24 Fitness and Gold’s Gym have already filed for bankruptcy
Mid-market gyms have been losing members for many years. Why?
low-cost gyms and boutique fitness studio's are more popular
boutique fitness studios are now 40% of the market
online work out classes are rising in popularity
working out is now about creating a social group - clusters of Studios pop up near each other and trendy cafes follow.
What COVID 19 measures does LA Fitness plan to use?
limit the number of customers
temperature checks for all staff and members
daily cleaning 2-3 pm (where new customers can’t enter)
contactless check in
masks required in states where it’s law
Gamestop
Video game store - 5,300 locations in 14 countries
Why have sales been falling for several years?
competition from online rivals (Amazon)
many consoles download games (don’t need disks)
mobile games are becoming more popular (people don’t need console games)
Business Revival Plan 1:
Sell other appliances (smart home features - Alexa, Google Home)
Sell merchandise for games
set up an e-commerce store
sell gaming equipment - headsets, headset holder, webcam, PC cleaner
Business Revival Plan 2:
Create a social hub for gamers
Couches for trying games (15 minutes is free. You pay to play an hour
Game stations - host tournaments, rent out the space for birthday parties
Table Top Gaming space in every store (for board games)
sell snacks and drinks in stores
Results:
trade-ins are their main business - which may be their strength against downloading games
on-line sales rose over 500% after pandemic began
Table top games a huge hit - but difficult to monetize
New X-box and Playstation will be released next year
considering events at night - no kids so can sell tickets, alcohol