The past few years have dealt the retail industry a tough blow. And that extends to major chains and local businesses alike.
The trouble started during the pandemic, when retail stores were forced to close their doors to customers. Smaller businesses with an online presence were able to keep going. But those that relied on foot traffic suffered a huge loss of revenue in 2020, to the point where many didn’t recover.
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Even retail businesses that did recover from the events of 2020 haven’t had it easy since.
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Inflation has plagued consumers since it started creeping upward in 2021. These days, consumers are still paying more for everything from rent to groceries.
As a result, people don’t have as much money to spend at retail stores. And so not surprisingly, sluggish sales are continuing to force a lot of local retailers to shutter or file for bankruptcy.
An iconic local retail store is closing after a successful 40 years.
Image source: Getty Images
Tariffs aren’t helping matters, either
At this point, it’s fair to say that the retail industry on a whole is worried about tariffs.
Giants like Walmart and Costco may be reasonably poised to deal with the impact of tariffs, given their massive footprints.
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But even Walmart has cautioned consumers and investors alike that it may need to raise prices if it can’t absorb the entire hit of tariffs on its own.
If major retailers are concerned about the impact of tariffs, it stands to reason that small businesses that rely on imports are even more stressed about them.
Local businesses don’t have the negotiating power that companies like Walmart and Costco do. And it won’t be surprising to see many beloved stores shut down if tariff policies substantially drive up the cost of procuring inventory.
Beloved local retail store closing for a different reason
While sluggish sales, inflation, and tariff worries may be driving a good number of retailers to close, one iconic San Francisco store is shuttering for a different reason.
Japan Video and Media, a thriving San Francisco business, has announced plans to close its doors for good at the end of the month. The store has had a successful 40-year run.
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Owner Takeshi Onishi was born in Japan and moved to the U.S. for college. He decided to stay and open a business in San Francisco’s Japantown.
Soon after, it gained a reputation as being the only store in the area with a notable inventory of Japanese and Korean videos with English subtitles. Onishi’s goal was to open a store that introduced people to Japanese culture and made the language more accessible.
Japan Video and Media was also well-known for its selection of anime merchandise and collectibles. The store was so popular that in 2020, San Francisco awarded it legacy business status.
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But now, fans have to say goodbye to Japan Video and Media as Onishi gears up to retire.
“We have served over a million people,” Onishi wrote in a statement. “We could not have done it without our loyal customers and our dedicated staff. We are grateful for each and every one of you.”
