Abc Retail Stores Case Summary

The recent strategic decision by the ABC to close their retail stores follows the ongoing trend moving to online avenues. The national broadcaster has announced the closure of all 50 ABC stores as they are no longer covering their costs. ABC Retail opened their stores 35 years ago as part of the ABC’s Commercial Division and sell DVDs, books, magazines, music collections, audio books, novelties, and console games. This case analysis will utilise internal and external strategy frameworks to critically assess the reasons behind; and the possible outcomes of the ABC closing its retail stores and assess the impact that this decision will have on the shareholders, customers and employees of the ABC.
The ABC's managing director Mark Scott explained
However the buying decisions of a consumer dramatically change when online. The Head of ABC Commercial Robert Patterson said that the decision was "in keeping with the shift of ABC audiences to accessing content across an array of digital platforms, while maintaining an appropriate level of physical retail distribution” and that “This strategy will create a more cost effective, nimble and flexible approach to servicing customers”. The online store will give customers the ability to purchase both digital and physical goods in addition to being able to personalise their shopping experience.
The employees are the main losers in this case with up to 300 staff members to lose their jobs over the next few months (Leys). The Head of ABC Retail, Regina Hoekstra, stated “the welfare of our staff will be a primary focus over the next few months. We are conscious that the ABC Shop is close to the hearts of our teams and we appreciate their ongoing hard work and dedication” (Ryan). However, the man power and leases are a major cost associated with retail that are no longer viable in the current condition. They will be joining the 400 staff that last year were no longer be employed by the