Title: What Causes a Store to Go Out of Business? | Small Business - Chron.com
Headings: What Causes a Store to Go Out of Business?
What Causes a Store to Go Out of Business?
Physical Causes
Economic Causes
Marketing Causes
Other Causes

Content: Economic Causes
Stores sometimes go out of business as a direct result of economic causes, such as shifting demand or excessive overhead. Even if your store is thriving by industry standards, it may go out of business if its overhead is too high. Caution in management decisions can help you avoid excessive overhead, such as signing a lease for more rent than the business can afford or hiring more employees than necessary. Shifting demand can sink a store by causing a major drop in sales. For example, if your store sells only a certain clothing label and that label goes out of style, the store may suffer a drop in sales and be unable to meet its staffing and overhead obligations, causing it to eventually go out of business. Marketing Causes
Marketing problems can cause a store to fail even if every other aspect of your store is positive. This is especially true if the store relies heavily on a niche audience or you have it located in a place with little casual traffic. Inadequate marketing can mean that you don't do enough marketing, or that you don't execute your marketing well enough or do not direct it at the right audience. Other Causes
Many other causes exist for store failure, among them too much or not enough differentiation. Souvenir shops in touristy areas are a prime example of the latter problem.