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Thread: More than 3,500 retail stores to close in the United States this year.

  1. #1
    The Overman's Avatar
    Join Date: 04.11.12
    Location: Hell, Illinois
    Posts: 1,161
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    Default More than 3,500 retail stores to close in the United States this year.

    Thousands of mall-based stores are shutting down in what's fast becoming one of the biggest waves of retail closures in decades.

    More than 3,500 stores are expected to close in the next couple of months.

    Department stores like JCPenney, Macy's, Sears, and Kmart are among the companies shutting down stores, along with middle-of-the-mall chains like Crocs, BCBG, Abercrombie & Fitch, and Guess.

    Some retailers are exiting the brick-and-mortar business altogether and trying to shift to an all-online model.

    For example, Bebe is closing all its stores — about 170 — to focus on increasing its online sales, according to a Bloomberg report. The Limited also recently shut down all 250 of its stores, but it still sells merchandise online.

    Others, such as Sears and JCPenney, are aggressively paring down their store counts to unload unprofitable locations and try to staunch losses.

    Retailers stores closing 2017
    Mike Nudelman

    Sears is shutting down about 10% of its Sears and Kmart locations, or 150 stores, and JCPenney is shutting down about 14% of its locations, or 138 stores.

    According to many analysts, the retail apocalypse has been a long time coming in the US, where stores per capita far outnumber that of any other country.

    The US has 23.5 square feet of retail space per person, compared with 16.4 square feet in Canada and 11.1 square feet in Australia, the next two countries with the most retail space per capita, according to a Morningstar Credit Ratings report from October.

    Visits to shopping malls have been declining for years with the rise of e-commerce and titanic shifts in how shoppers spend their money. Visits declined by 50% between 2010 and 2013, according to the real-estate research firm Cushman & Wakefield.

    A Sears store in the Woodbridge Center.Business Insider/Sarah Jacobs

    And people are now devoting bigger shares of their wallets to restaurants, travel, and technology than ever before, while spending less on apparel and accessories.

    As stores close, many shopping malls will be forced to shut down as well.

    When an anchor store like Sears or Macy's closes, it often triggers a downward spiral in performance for shopping malls.

    Not only do the malls lose the income and shopper traffic from that store's business, but the closure often triggers "co-tenancy clauses" that allow the other mall tenants to terminate their leases or renegotiate the terms, typically with a period of lower rents, until another retailer moves into the anchor space.

    shopping mall
    Getty Images

    To reduce losses, malls must quickly find a replacement tenant for the massive retail space that the anchor store occupied, which is difficult — especially in malls that are already financially strapped — when major department stores are reducing their retail footprints.

    That can have grave consequences for shopping malls, especially in markets where it's harder to transform vacant mall space into non-retail space like apartments, according to analysts.

    The nation's worst-performing malls — those classified in the industry as C- and D-rated — will be hit the hardest by the store closures.

    The real-estate research firm Green Street Advisors estimates that about 30% of all malls fall under those classifications. That means that nearly a third of shopping malls are at risk of dying off as a result of store closures.
    To revenge the misdeeds of the ruling class, there existed in the middle ages, in Germany, a secret tribunal, called the “Vehmgericht.” If a red cross was seen marked on a house, people knew that its owner was doomed by the “Vehm.”

    All the houses of Europe are now marked with the mysterious red cross.

  2. #2
    Crimes in the Ocean mr.svperstar13's Avatar
    Join Date: 09.15.12
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    Guess this will finally put the old mall I used to go to out of its misery. It's been barely hanging on for years and it's half empty as is. Shame.

  3. #3

    Join Date: 06.22.14
    Posts: 232
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    This was beyond inevitable. Malls should've started rapidly dying out close to a decade ago but they were used for tax loophole fuckery so the life support was extended. Now there's way too many of them, and towns are beginning to move towards less super-duper 'consumerist-looking' developments and instead towards the more gentrification-ey 'cultural squares.' Additionally, there was still some money to be made in brick and mortar from people over 50 or so who could barely use a Commodore 64, but now all of our parents and grandparents have Facebook and Amazon accounts and are rapidly becoming more technologically literate and realizing the insane markups that stores charge.

    Everyone and their dog has known for awhile that in-store retail is dying. We have self-checkout, and computers for ordering things at restaurants. I'm actually surprised that came before the mass shuttering of goods retailers. Some post offices now have change rooms for people to try on clothes they order online, to make returns more convenient. This is just how technology drove things to be. Good riddance to malls frankly.

    The larger questions are obviously going to come about, probably later rather than sooner. Over the next decade or so, the automation of the workforce is indeed going to pretty much force us to completely reconfigure certain aspects of society.
    Last edited by Justsomeguy; 03-25-2017 at 12:40 AM.

  4. #4
    Raspberry Syncope FeedYourHead's Avatar
    Join Date: 07.06.09
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    This makes me happy.

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