When word of a major change in the marketplace surfaces, consumers are quite adept at responding and doing it quickly.
This is one of the takeaways from the recent announcement that The Bay was going into bankruptcy and liquidating its stores.
A report by commercial realtor Colliers International says the announcement of the bankruptcy triggered an almost immediate increase in foot traffic through outlets of the country’s oldest company.
Traffic had been down in the run up to the announcement – likely the reason the firm failed in the first place – but it quickly reversed when the announcement came. Bargain hunting was the likely reason behind the abrupt change.
Their second observation is that this increase in foot traffic exceeded the level of activity in similar mass market stores such as Costco, Giant Tiger, Canadian Tire or Walmart. So, the announcement amounted to the starting pistol for shoppers to get into the race for discounts.
And, finally, Colliers says the Bay’s disappearance is having little impact or bankruptcy boost for other retailers in smaller, urban markets such as Regina and Saskatoon.
