Since 1949, Value Electronics stores have been a popular destination within the Phoenix metropolitan area. Our stores offer customers a place to find the lowest pricing for their entertainment and electronics needs. The last decade has seen substantial job cuts in several economic sectors, due to the global recession. Many companies have downsized their staff because they were unable to afford to pay salaries, while others shut down as part of reorganization efforts. We regret to inform you that we will be permanently closing all Phoenix area Value Electronics stores at 9:00 p.m. on Friday, January 27, 2017. Whether you work on the sales floor, or at the distribution center, each of you has played a valuable role in helping Value Electronics serve the Phoenix area, and I hope you will take pride in the role you played in the lives of our customers. Demand for electronic products has dramatically reduced as an aftereffect of the recent economic recession. Although we had hoped to emerge strong, the management team has decided that Value Electronics must shut its doors in order to prevent bankruptcy proceedings. Management has based their decision upon the following reasons: Supply outweighs demand: According to Craig Johnson, president of Customer Growth Partners, one of the biggest issues is that retail is simply …show more content…
According to an article in US News and World Report, back in 2000, for every dollar spent at physical stores, just 30 cents were spent online and at mail-order houses, according to government figures. Now, the online category makes up nearly 70 cents for every dollar spent at general merchandise stores. Additionally, online shopping has attuned customers to focusing on price and hunting for the best bargains, thereby shrinking profit margins at many stores (D'Innocenzio,