10 Companies That Fell Over The Last Decade
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Business Insider recently published a video that features 10 companies that we lost in the last decade*.
The report details the failure of Henri Bendel which closed after over 100 years in business, Payless ShoeSource which announced it was closing hundreds of stores in the United States and Canada, Blockbuster which has its last standing location in the world located in Oregon, Wow Air, A&P, Charming Charlie, Sports Authority, Gymboree, Borders, and Toys R Us.
Those businesses that have ultimately been forced to close, have neglected to keep up with the demands of the market, with their competition, and the closure of those businesses is a symptom of changing purchasing methods and preferences.
The last standing Blockbuster in Oregon has declared that they have no plans to close, and while you may not be able to find some of those business venues in the United States any longer, such as Toys R Us, you can find it in other countries like Canada. That is after Toys R Us had been sold to holding company Fairfax Holdings.
Over the years we can expect the business landscape to evolve dramatically. For example, we see that more people are becoming comfortable with shopping online whether it be shopping for clothing, groceries, gadgets, or cars. Though we might see a trend away from brick-and-mortar however, that doesn't mean that those retail businesses have to ultimately face the same doom.
Fastest Growing Retail Segment
The used clothing market right now is the fastest growing category in retail clothing, which might be surprising considering the reports detailing the steady decline of brick-and-mortar shopping but second hand clothing stores have adjusted and evolved their approach, offering people a more convenient way to make a purchase in this market. Now, you can find a variety of places online to purchase lightly used items, it isn't only delegated to the eBay or Craigslist market like it might have been in the early years.
Years ago, Blockbuster had the chance to purchase Netflix for $50 million, a company today estimated to be worth billions.
In those days Netflix was still a DVD mailing service and who could have known what it would eventually become. The CEO recalls seeing it as a small niche business, one that was worth passing up. When offered the chance to buy the company for $50 million it's reported that they struggled not to laugh at the invitation, before ultimately declining.
Many companies that we see today, Tesla, Netflix, Facebook etc, are they going to be there 10 years from now? 20? 100? It's impossible to know. Some might suggest that Tesla is here to stay forever, but others say it will be on its way out with others that are suited for the same fate. Those businesses that wish to still be around in decades to come are going to need to be successful in either using the government to make it happen, in using that force in carving out their protected market share, or they will need to voluntarily win the vote of the people and compete for their dollars that are being spent.
It's estimated that more than 90 percent of startups are ultimately going to fail.
About 20 percent of small businesses will fail in their first year, about 30 percent in their 2nd, 50 percent after 5 years.
Considering the high rate of failure, that makes those who see continued success for decades, some more than 100+ years, a true rarity, it's something to be proud of, making it that long in business is nothing short of impressive.
Some of the oldest companies in the market today, some that have already been around for 100+ years, include the likes of Baker's Chocolate, Jim Beam, JP Morgan Chase, Colgate, Johnson & Johnson, The Kellogg Company, Coca-Cola, and The Hershey Company.
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The information posted above is for informational purposes only and should not be considered financial advice.
