Metropolitan statistical areas with populations of less than 300,000 will no longer have stores after September 1, 2016 (or sooner). In larger cities, there will be stores, but not as many. The goal is no more than one store for every 500,000 population. If a metro area of four million, for example, has nine stores, the number will be reduced to eight; three million, six stores; etc. You do the math. Some cities will be unaffected. Others may have the number of retail oulets nearly cut in half. It of course is due to slumping sales and fulfillment issues after the Keystone conversion disaster. And the stock price being at a six-year low doesn't help, either.
4 replies (most recent on top)
Response to the question: The Keystone conversion disaster (also known as Siebel) is where this so-called technology company switched out its master computer system in a really stupid manner. Retail stores, factories, delivery, customer service and all departments were put on the same system for unifomity and the ability to all see info on customers and their orders that others see. In theory, it's a great idea. The problem is this brilliant technical company shut down the old systems before the new one was operational. Rather than do what every other smart company does, they didn't keep the old one operational until kickoff of the new. During the down time, while leaving stores to do old-fashioned paper orders, they instead transfered data from one to the other. Guess what? Some of it took; some of it didn't. And some orders entered into Siebel by stores somehow weren't seen by manufacturing and/or delivery. What used to be a two-week wait for fullfilment has become months for some customers. Needless to say, many have cancelled, and spread the word via the worldwide web. Look at sites like pissed consumer or consumer affairs for details.
What's this Keystone conversion disaster?
This post is incomplete. There is one big exception. If it will cost too much to get out of an existing lease, and the store can at least pay for its own operation, it will remain in business until the lease is up. Then it shuts down.
Wow, simply wow