America’s Retail Apocalypse

America’s ‘Retail Apocalypse’ Is Really Just Beginning:

The reason isn’t as simple as Inc. taking market share or twenty-somethings spending more on experiences than things. The root cause is that many of these long-standing chains are overloaded with debt—often from leveraged buyouts led by private equity firms. There are billions in borrowings on the balance sheets of troubled retailers, and sustaining that load is only going to become harder—even for healthy chains.

The debt coming due, along with America’s over-stored suburbs and the continued gains of online shopping, has all the makings of a disaster. The spillover will likely flow far and wide across the U.S. economy. There will be displaced low-income workers, shrinking local tax bases and investor losses on stocks, bonds and real estate. If today is considered a retail apocalypse, then what’s coming next could truly be scary.

Not every mall can get an Apple Store to lift sales by 10 percent.

Product Adoption

Note that few say, “The device I have doesn’t have the right features.” That’s because features don’t create problems that we can solve by embracing a new idea or technology. Our stories do. A missing feature might provide some of the narrative of our internal story, but most of all, the story is built around the behavior of those around us.

If you want a population to adopt your innovation, you have to create a problem that is solved by adoption. And that problem is almost always related to, “what about the others?”

Seth Godin, making sense as usual