Steve Wybo: Turnaround manager: Brick and mortar retail struggles to compete – MiBiz
Steve Wybo was interviewed by MiBiz in its article titled “Turnaround manager: Brick and mortar retail struggles to compete.”
Steven Wybo doesn’t see much of a happy ending for the vast majority of brick-and-mortar retail stores. The senior managing partner in the Birmingham office of international turnaround and restructuring firm Conway MacKenzie Inc. says the impending demise of West Michigan-based retailers like MC Sports and Family Christian Stores is indicative of the trends impacting larger mall anchors. In particular, they bear too much fixed cost and have to contend with ever-changing consumer trends. Wybo spoke with MiBiz regarding recent closures and the very limited number of options he sees for retail.
Question: What’s your high-level analysis of the trends impacting so many legacy retailers?
Answer: Obviously, without the brick and mortar, the online retailers are able to charge a lower price. You have compression on the revenue side in terms of margin, but then you also have compression on volume because buyers have options. But then if you think of Porter’s Five Forces … the bargaining power of the buyers, the customers and then the bargaining power of the suppliers — if (all) of those are very strong, that’s a tough business model.