In recent news for the city of DuBois, a few local stores and businesses are closing their doors due to low profits over the last couple of years. The first, the Bon-Ton clothing and households store will be shutting its doors for good in the upcoming weeks. The store’s chief executive officer, Bill Tracy, cites the reason of the closing to be the decrease in corporate profit over the last few quarters. The franchise has been hit hard by the rise of online shopping and growth in diversity of Walmart and is no longer able to operate under its “old school” marketing and sales strategies. The store was known locally for having blockbuster sales around the times of holidays, especially Black Friday. During this time almost all items in the store were at least in the area of 20% off of the market suggested price.
Courtesy of USA Today
It is unknown how many local employees will be out of a job due to this closing. Bon-Ton has not released a plan regarding the relocation of managers or other workers to ensure positions. It is almost certain that some will be let go, but the number is yet to be determined.
The second business that will be closing its doors in the DuBois area is
Ponderosa Steakhouse. The steaks will stop being served at 8:30 p.m. this coming Saturday, February 3. The owner, Sam Mollica, claims that the reason for the closing is because he is retiring. The sale of the building is pending, and he will officially be walking away from the restaurant. Ponderosa has been in business for 39 years, so this will be a sad sight when the doors are locked up for good.
I personally was never a fan of Ponderosa. I felt as though it wasn’t a true steakhouse. I mean, it had a buffet on the inside too. It is hard to claim that you are a professional and serious steakhouse while also having a half put together buffet out there. Don’t get me wrong, at my hungriest I would not be turning down some of their food. This just would not be my first choice to go grab a bit to eat any day of the week.
The closing of Ponderosa may possibly open up more business for other local restaurants who have long been competing with eachother, as well as Ponderosa, for business. This will put Ponderosa’s customers back into the pool of other restaurants to redistribute their money. This would help boost the status of their restaurants and overall improve the economy of the local area.
Courtesy of Foursquare
For the closing of this restaurant it is looking as though there is going to be some job loss for those who were under Sam Mollica. With the closing date being so soon and no alternate operation released or planned, those workers appear to be out of work as of Saturday.
A positive of the Ponderosa closing compared to the Bon-Ton closing is the reasoning. Having Ponderosa close due to Mr. Mollica retiring is not a sad or depressing story, it is great that the store is going out on a happy note and not being forced to close its doors due to low income. This however is the unfortunate story for Bon-Ton. Although, this is a corporate company we are dealing with here. The company has seen extreme success in the past years and is not hurting for capital. Even if the company sold all of its assets and cashed out, their would be extreme success by the individuals who won it. The closing of a few stores does not equate to corporate being in dire need of money, they are going to be just fine.
Overall, the city of DuBois is just experiencing the effects of capitalism. Many stores are competing in the area to sell the same products at the lowest prices possible in order to increase their market. Bon-Ton has felt the effects of being out bid and played regarding the accessibility to the consumer by companies such as
Amazon, Walmart, and Macy’s. They were no longer able to compete with the low prices that these other companies were able to offer and had no other choice than to close their doors for good.
As for Ponderosa Steakhouse, this is the classic diner story of a small town. The long-time owner has finally decided to hang up the tongs and hold the steaks. The business will just be sold and he will cash out and retire happy and pleased with the overall success of his business.
The two overall aspects of business can distinctly be compared and contrasted across the entire country of the United States, and other places across the world. It often appears as a struggle to keep going and stay on top, very much like life itself.