By Kim Zimmermann, Managing Editor
If a retailer has a store that is struggling, they try to right the ship. If the ship is still sinking after investing some time and effort trying to get it back on course, it is time to abandon ship and head for shore.
That’s essentially what Tuesday Morning did when it pulled the plug on its e-Commerce site last month. The e-Commerce site was doing about the same amount of business as one of the retailer’s top-performing physical stores, according to reports. But it was losing money and had been for a while. That, along with the fact that the home goods business has been struggling since the economic collapse in 2008 and other factors, prompted the move.
Advertisement
Some argue that the close-out segment is just not well suited to online shopping, as it is more of a “thrill of the hunt” type of retail business best conducted in the store. However, the Wall Street Journal points to the success of sites such as One Kings Lane and Kynetic LLC’s Rue La La, owned in part by eBay. Traditional close-out retailer T.J. Maxx announced in December that it was making major investments in upgrading its e-Commerce initiatives. So, that theory doesn’t fly.
Truth is, it was just a business decision, as it would be if the retailer closed one of its 850 brick-and-mortar stores. No one would criticize Tuesday Morning for closing an underperforming store. But the closing of its e-Commerce business prompted headlines such as “Tuesday Morning Throws In The Towel.”
We have all come to expect to buy anything from any retailer online. However, that model doesn’t always make sense from a business standpoint. Sometimes, the best decision is, indeed, to throw in the towel.
Want to share your thoughts with Kim? Connect with her on Twitter: @KimZim2764
