Goodbye to another famous chain in the U.S.: it permanently closes many locations

The world of retail is full of constant changes and unexpected surprises. Many chains that once seemed invincible have had to adapt their strategies or even close stores to survive. Consumer behavior has changed, and that directly affects brick-and-mortar stores.

A recent consequence is the permanent closure of several Parachute stores, a chain known for its high-end home products. This company, which had expanded with a considerable network of locations, has decided to drastically reduce its physical presence. Out of its 26 stores, it will close 19, keeping only seven open in the United States.

The difficulty of predicting buyer behavior

For large stores, understanding their customers is a complex task. Over the years, retailers have invested a lot of time and resources in studying how buyers behave inside their establishments. That's why many stores are strategically designed, forcing customers to walk through several sections to increase the chances of additional purchases.

However, shopping habits have changed in recent years, and eye-catching promotions are no longer enough to attract consumers. After the pandemic, the preference for shopping online has prevailed. This has affected even products that were once thought to be exclusive to in-store purchases, such as furniture or formal clothing.

This shift toward e-commerce has put many businesses that relied on physical traffic to keep going in check, according to The Street. Parachute, for example, has experienced this impact firsthand. Its CEO, Mehdi Oufkir, has explained that some of its stores were too large and that this "overexpansion" negatively affected the brand's strength.

New strategies and partnerships to adapt to the market

Despite the closures, Parachute isn't giving up and has announced a strategy to adapt to current times. The company will focus more on its e-commerce operations and on strengthening partnerships with large, already established retailers. In fact, it has a collaboration with Nordstrom and will now launch a line of about 200 bedding and home goods through the Target chain.

The prices of these products at Target will range from just over $10 to $200, which opens the brand to a much broader and more diverse audience. This move aims to offset the reduction in physical stores with a greater presence on established and online sales platforms.

Traditional brick-and-mortar stores face an uncertain future, where flexibility and digital innovation will be key to surviving and thriving. Parachute is just one more example of how retail is reinventing itself to avoid disappearing.