WICHITA, Kan. — The closure of over 200 Eddie Bauer retail locations, including two in Wichita, reflects deeper structural changes in the retail sector, according to a local business analyst. Dr. Larry Straub, Associate Professor of Management at Newman University, explained that financial pressures on national chains often stem from acquisition strategies by investment firms and hedge funds, which typically load companies with substantial debt. This makes them highly vulnerable during economic downturns.
“When these firms take over, they often burden the business with debt, making it fragile when market conditions shift,” Straub said. “Even minor economic disruptions can quickly escalate into existential threats for these retailers.”
The rise of e-commerce has further intensified the challenges. Consumers increasingly favor the convenience of online shopping over visiting multiple physical stores, accelerating the decline of brick-and-mortar locations. Still, Straub believes in-person shopping will retain relevance. “People are social creatures,” he noted. “I don’t think we’re built to stay indoors all day just clicking buttons.”
Despite the struggles of large national chains, smaller, locally owned businesses may have an advantage due to their agility. “Big corporations can be slow and rigid,” Straub observed. “Smaller operations are more like speedboats—they can pivot quickly in response to market changes.”
This adaptability allows independent retailers to better meet local demand and withstand economic fluctuations that larger, more bureaucratic organizations may struggle to navigate.
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Wichita business expert breaks down economic factors behind retail closures
WICHITA, Kan. (KWCH) – Eddie Bauer is closing over 200 stores, including two in Wichita, on Monday. A Wichita business expert spoke about what the continued struggles national retailers are facing means for the economy.
“A lot of this has to do with investment firms, hedge funds… Different things. They come in and buy these things out, and traditionally, they load them up with a bunch of debt, and so it gets really precarious for them when there’s down turns,” said Dr. Larry Straub, an Associate Professor of Management at Newman University. “If there’s something that goes against them in the economy, it can get tough in a hurry.”
Related Story: Reports: Eddie Bauer closing fleet of 200-plus retail stores, includes 2 in Wichita
Online shopping can impact the retail stores as well.
“More and more people have just found the convenience of shopping online instead of running around and going, checking three or four or five different stores,” Straub said.
Straub said he does think there will always be a market for people go to stores in-person.
“I think people will want to go out and shop. I just don’t think we’re wired to sit around in our caves, and in our houses all day long and just push buttons,” Straub said.
Although small business owners keep seeing national retailers struggling, Straub doesn’t think that the smaller businesses should be concerned.
“I think smaller businesses and locally owned businesses a lot of times, they can be more nimble,” Straub said. “There’s these big lumbering organizations, these smaller organizations, locally owned organizations. They can zip around more like speed boats, and I think that’s where sometimes they have the advantage.”