CEO Jim Tompkins Predicts More Bankruptcies Over Next Two Years as Online Shopping Continues to Grow
Raleigh, NC — With online sales now accounting for nearly 10% of total U.S. retail sales, a new podcast released by Tompkins International predicts a continued increase in bankruptcies in 2013-2014 for companies that lack a strong, multichannel retail strategy.
“Customers really want to shop online,” says Jim Tompkins, CEO and President of Tompkins International. “One of the most interesting aspects of holiday 2012 is that online sales grew 16% and in-store sales only grew about 2.8%. This is a huge difference in growth rates, and it is impacting stores.”
A recent Forbes report indicates store closings increased by 25% for the first three quarters of 2012. With this statistic looming, it is time for retailers to examine their plans for overall profitability. Companies need to create a multichannel approach that combines the best of online and in-store retail and supply chain strategies.
“Companies that do not have clearly defined supply chain and technology capabilities to support their multichannel strategies will no longer exist in a couple of years,” Tompkins adds.
Listen to the podcast to learn more about Increased Store Closings After Holiday Peak Season Ends, or subscribe to receive the Global Supply Chain Podcasts as they become available.
About Tompkins International
Tompkins International transforms supply chains to create value for all organizations. For more than 35 years, Tompkins has provided end-to-end solutions on a global scale, helping clients align business and supply chain strategies through operations planning, design and implementation. The company delivers leading-edge business and supply chain solutions by optimizing the Mega Processes of PLAN-BUY-MAKE-MOVE-STORE-SELL. Tompkins supports clients in achieving profitable growth in all areas of global supply chain and market growth strategy, organization, operations, process improvement, technology implementation, material handling integration, and benchmarking and best practices. Headquartered in Raleigh, NC, USA, Tompkins has offices throughout North America and in Europe and Asia.