Why Major Retailers Shut Down Their Facebook Stores

Posted Feb 18, 2012

In the past year, four major retailers have shut down their storefronts on Facebook this past year. The Gap, JC Penney, Nordstrom, and Gamespot shut down their stores on Facebook because they have not bought anything. It turns out that fans of these brands preferred shopping on retailer websites over doing this on Facebook.

It turns out that people would rather use Facebook to share wishlists and discuss purchases rather than buying anything on Facebook. This makes it impossible to recoup any return on investment in the tab software with storefront capabilities.

?There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop,? stated Forrester Research analyst Sucharita Mulpuru in a phone interview with Bloomberg. ?But it was like trying to sell stuff to people while they?re hanging out with their friends at the bar.?