A great example of this "disruption" and "reverse disruption" can be seen in the news today that Sears Holdings is leasing seven stores in the Northeast to UK clothing retailer Primark. Although the financial details were not disclosed, Sears said that about 520,000 square feet of retail space will be leased to Primark overt the next 12 to 18 months.
In Philadelphia's King of Prussia store -- Sears is vacating the store altogether and leasing the entire thing to Primark. In this case, Sears is disguising itself as a REIT.
In the other six stores -- Sears is leasing a portion of the store to Primark and the retailers will co-exist side-by-side. In these cases, Sears is disguising itself as the Airbnb of retail -- renting it's finished basement to Primark, a nice enough fellow from London in need of a place and with money to spend.
The bottom-line is this. More disruption is sure to come, which will lead to many more changes, but physical stores (especially innovative and well managed ones) will live on for as long as humans exist.
Do you agree? Disagree? Comment below and let me know what you think?
Husband and father. Software innovator, entrepreneur and marketer. My wife is my soul mate. My 3 kids are my greatest accomplishment. I love innovation and marketing. Also running, yoga, wine, Baltimore Ravens and Avalon, NJ. Sales and Marketing VP at Natural Insight. Founder & CEO of ZoomSafer. Co-founder of SMBLive. Marketing VP at Groove Networks and USinternetworking.