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Sep 19, 2023 8:40:22 AM | Soft Surroundings Going out of Business: Navigating the Changing Retail Landscape

Soft Surroundings faced several challenges with their traditional retail approach. However, physical retail stores can still succeed in these challenging times by embracing innovation and leveraging technology.

soft surroundings going out of business

Image by StockSnap from Pixabay


In a rapidly evolving retail landscape, even beloved brands like Soft Surroundings are not immune to the challenges of the ecommerce era. Soft Surroundings, a women's clothing retailer known for its thoughtfully curated merchandise, recently made headlines with its decision to file for Chapter 11 bankruptcy and close all its physical stores.

Yes, Soft Surroundings is going out of business. This unexpected turn of events raises questions about the survival of brick-and-mortar retail in the digital age. In this article, we will explore the factors that led to Soft Surroundings' bankruptcy and discuss strategies that physical retail stores can employ to thrive in the ecommerce era.

The Rise and Fall of Soft Surroundings

Soft Surroundings, founded in 1999, quickly gained popularity among women seeking stylish apparel, home decor, and accessories. With a combination of brick-and-mortar stores and a strong online presence, the brand catered to a loyal customer base.

However, the advent of ecommerce and changing consumer preferences posed significant challenges to the company's traditional retail model.

1. The Impact of Ecommerce

The rise of ecommerce presented consumers with unprecedented convenience and choice. Online retailers offered a vast selection of products, competitive prices, and hassle-free shopping experiences.

Soft Surroundings, like many other physical retailers, struggled to keep up with the rapidly growing ecommerce market. The brand's traditional model, reliant on physical stores, couldn't compete with the 24/7 accessibility and convenience of online shopping.

2. Shifting Consumer Behavior

Another factor contributing to Soft Surroundings' downfall was the shift in consumer behavior. Modern consumers prioritize convenience and personalized experiences. They expect seamless online shopping experiences, fast delivery, and easy returns.

Physical retailers that failed to adapt to these changing expectations faced dwindling foot traffic and declining sales. Soft Surroundings' inability to provide a seamless omnichannel experience left it vulnerable to the competition.

3. Financial Challenges

Soft Surroundings' financial challenges also played a significant role in its bankruptcy. The company's inability to generate sufficient cash flow to cover its debts and operational expenses ultimately led to its downfall.

As vendors withheld merchandise due to unpaid bills, the brand faced inventory shortages, further exacerbating its financial woes. Despite efforts to restructure and reduce costs, Soft Surroundings couldn't reverse its declining fortunes.


Image by StockSnap from Pixabay

Strategies for Physical Retail Survival

While Soft Surroundings' bankruptcy serves as a cautionary tale, it's important to remember that not all physical retail stores are destined to meet the same fate.

By embracing innovation and leveraging technology, brick-and-mortar retailers can navigate the changing retail landscape and thrive in the ecommerce era. Here are some strategies for physical retail survival:

1. Embrace the Omnichannel Approach

To stay relevant in the digital age, physical retailers must adopt an omnichannel approach that seamlessly integrates their online and offline channels. By leveraging technology, retailers can provide a consistent and personalized customer experience across all touchpoints.

Integrating online and offline inventory systems, offering click-and-collect services, and providing in-store pickup for online orders are just a few ways retailers can bridge the gap between their physical and digital presence.

2. Create Engaging In-Store Experiences

Physical stores have a unique advantage over online retailers when it comes to creating immersive and engaging experiences for customers. Retailers should focus on creating memorable in-store experiences that go beyond mere transactions.

Incorporating interactive displays, offering personalized styling consultations, and hosting events and workshops can help drive foot traffic and foster customer loyalty.

3. Leverage Data and Analytics

Data and analytics play a crucial role in understanding customer behavior and preferences. By leveraging data from both online and offline channels, retailers can gain valuable insights into customer preferences, purchase patterns, and trends.

This information can be used to personalize marketing campaigns, optimize inventory management, and make data-driven decisions that drive growth and profitability.

4. Embrace O2O (Online-to-Offline) Strategies

O2O strategies bridge the gap between online and offline channels, allowing retailers to leverage the strengths of both. Offering exclusive in-store promotions for online customers, providing online product reservation for in-store pickup, and using targeted digital marketing campaigns to drive foot traffic are all effective O2O strategies. By seamlessly integrating their online and offline operations, retailers can provide a unique and cohesive shopping experience that encourages customers to visit physical stores.

5. Focus on Customer Service and Personalization

In an increasingly competitive retail landscape, exceptional customer service and personalized experiences can set physical retailers apart. Investing in well-trained staff who can provide personalized recommendations, offering hassle-free returns and exchanges, and implementing loyalty programs can help retailers build strong customer relationships and foster brand loyalty.

6. Collaborate and Partner with Ecommerce Players

Rather than viewing ecommerce as a threat, physical retailers can leverage partnerships and collaborations with established online marketplaces and platforms. This allows retailers to tap into a wider customer base and benefit from the expertise and resources of ecommerce players. Collaborative efforts can include joint marketing campaigns, hosting pop-up shops, or even opening dedicated sections within online marketplaces.

7. Embrace Innovation and New Technologies

To stay ahead of the competition, physical retailers must embrace innovation and new technologies. This can include implementing mobile payment options, utilizing augmented reality for virtual try-ons, or integrating smart fitting rooms that enhance the shopping experience. By continually exploring and adopting new technologies, retailers can create unique and memorable experiences that keep customers coming back.


The bankruptcy of Soft Surroundings serves as a stark reminder of the challenges physical retailers face in the ecommerce era. However, by embracing an omnichannel approach, creating engaging in-store experiences, leveraging data and analytics, and embracing O2O strategies, physical retailers can navigate the changing retail landscape and thrive in the digital age.

By focusing on customer service, collaborating with ecommerce players, and embracing innovation, physical retailers can position themselves for long-term success in an evolving retail landscape.

Hermes Fang

Written By: Hermes Fang

6 years experience in digital marketing. A gracious loser, not a lousy winner.