Skip to comments.A 'tsunami' of store closings expected to hit retail
Posted on 01/22/2014 1:59:17 PM PST by EBH
Get ready for the next era in retailone that will be characterized by far fewer shops and smaller stores.
On Tuesday, Sears said that it will shutter its flagship store in downtown Chicago in April. It's the latest of about 300 store closures in the U.S. that Sears has made since 2010. The news follows announcements earlier this month of multiple store closings from major department stores J.C. Penney and Macy's.
Further signs of cuts in the industry came Wednesday, when Target said that it will eliminate 475 jobs worldwide, including some at its Minnesota headquarters, and not fill 700 empty positions.
Experts said these headlines are only the tip of the iceberg for the industry, which is set to undergo a multiyear period of shuttering stores and trimming square footage.
Shoppers will likely see an average decrease in overall retail square footage of between one-third and one-half within the next five to 10 years, as a shift to e-commerce brings with it fewer mall visits and a lesser need to keep inventory stocked in-store, said Michael Burden, a principal with Excess Space Retail Services.
(Excerpt) Read more at cnbc.com ...
The beginning of the end?
They’re are going the way of Montgomery Wards.
Brick and mortar is so 20th Century.
IMO most of these companies had over-expanded anyway. Opening stores every year to sell stock to idiots who did not understand the concept of comp store sales.
There is more vacant retail space out there than we’re ever gonna fill again.
Look on the bright side there will be lots of new jobs preparing tax returns.
Couple it with 0bamacare...could be...
Retail stinky jobs is the last twig holding up the bankster’s house.
Much of it was vacant when it was built, and has never been occupied.
Yet just a few years ago, a majority of Freepers insisted that there wasn’t a real estate bubble. And it wasn’t going to pop...
That is just it, isn’t it. Industry is gone and lots of folks moved into services. Retail, insurance, banking, stocks, etc.
Insurance, at least health insurance, is in a choke hold and if...no...when it collapses will take a lot of things down with it.
But now add in the low paying service sector collapse...we already have 92 million Americans not in the workforce. That is nearly one third the population...by summer this country is going to be tearing itself apart.
I would say so.
Companies come, companies go. Adapt or Die.
People lack the cash to spend.
I haven’t made a sale on Ebay since the first week in December. Same with Craigslist. Potential buyers keep making lowball offers that are unsettling; no way do I sell 14K and 18K gold below scrap metal prices.
The gold items that I am presently selling on Ebay, if they do no sell tomorrow, will be going to the metal scrapper.
I have to pay my utility bills.
True, that, imho.
it’s already happening. Stores have a crappy selection, but boast that you can shop 24/7 online, and when you dont find what you want in the store, they can SHIP IT TO YOU. This will crank up the cost because now you’re paying for tax AND shipping.
Just another exmaple of getting far less for far more.
I have a client who is an ebay seller as well. She mentioned the last time she booked with us things were pretty soft. And she sells some beautiful stuff too.
Yep, ask Amazon.
Manufacturing is production. Some services are productive but much of it is just transactions, non-productive or low-production activity.
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