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.
Actually, the last bit that will hold together the 1%’ers house ‘o’ cards is massive quantities of peasants’ anesthetic:
sports Sports SPORTS!!!!!
/It’s been going on for thousands of years:
I recently read of a new translation of a Mesopotamian clay tablet in which some king or another assured a distant mayor that the citizens wouldn’t notice cuts in their food supply as long as they were provided with lots of horse racing to keep their minds off their problems.
This happened in 700 BC.
In 1988 I started work for Digital Equipment Corporation(DEC). The second largest computer maker in the world with 125,000 employees. DEC missed the PC wave and died because of it. Not even 20 years later it is a footnote in history. It is the way business works. Adapt, change, and make good choices OR die.
Good job, Barry. WAY TO GO!
Not entirely true. The DEC hardware is long gone (learned to program on a PDP-8E, it was so much fun), but vestiges of VAX/VMS live on as Windows 7. IIRC.
How do I find your items? E-Bay username? Thanks.
Nations come, nations go. Adapt or die.
I started with DEC in 1977. By 1988 we had the first inkling that the end was coming. By 1990 is was a certainty, just a matter of time. I bailed in 1994 while the gettin’ was still good.
It was wishful posting....many of those Freepers were trying to get top dollar for the house they had on the market, they were real estate agents, or they worked in the mortgage business.
Wave number 2 is coming through. Those retail closings in 2009 were just the tip of the iceberg.
And in health care... dealing with the Obamacare bureaucracy.
Hey, service jobs!
I was telling my wife the other night that we lived just fine without all of the gadgets and services.
We didn’t even have cable and only had 6 over the air TV stations and we survived. And when I needed to call someone on the phone, I’d walk over to the phone pick it up and dial the number.
Life wasn’t half bad and it was a lot cheaper too.
Looks like some of the Best Buy web pages I’ve seen.
These are stores whose headquarters put their social agendas before their merchandise. Too bad those they support don’t support them. /s
I went to BestBuy to buy an item that I had first seen on their website. I wanted it that day.
It was more expensive in the store and when I questioned the price I was told it cost too much to stock so that is why the price online is less.
I did end up getting it for the online price but I had to push for it.
“by summer this country is going to be tearing itself apart”
Yes; chances are people are going to become downright feral about finding some sort of security and safety.
“DEC missed the PC wave and died because of it”
DEC missed ALL of the waves, not just the PC wave! They stuck with VAX/VMS until the bitter end, ignoring the PC revolution, ignoring the Unix revolution, and ignoring the SPARC revolution. On top of that, they were in the perfect position to be Cisco before Cisco was even born, and they blew that too.
And all of these massive management failures can be summed up in two words: Ken Olsen.
Yeah; I mainly shop online and with a little research, the stuff at the mainstream stores are boring, repetitive, and are certainly not good quality.
There building the largest mall in Florida in Sarasota .I wonder if they can fill it??? Stores will probably close in the older malls
“It was more expensive in the store and when I questioned the price I was told it cost too much to stock so that is why the price online is less. I did end up getting it for the online price but I had to push for it.”
Best Buy pretty much makes up random excuses about the pricing differential. They’ll also price match their own online prices, though they’ll often grouse about it.
Best bet at Best Buy is to walk in and ask right off the bat if they’ll price match their online prices without saying what you want to buy and look like you’re about to flee if they won’t. They’ve always matched when I’ve made that approach.
Actually, our Best Buy will price match ANY legitimate competitor’s price in their entertainment electronics area.
There's no reason to buy merchandise locally. Most of it is pawed over and in those large stores shopping isn't even fun. All of the merchandise is the same anyway, just with different labels. What's the point of having local merchandise if the stores don't sell unique hand-crafted merchandise that I can't get online?
Yeah, but look on the bright side.
The private patrol business is going to be booming as is the barrier/security wall building and gate construction business. Also, instead of hiring more union cops, you and your neighbors can patrol your own neighborhoods.
Who knows? Maybe the Committees of Vigilance will come back into fashion!
Yet they keep building more! I don't understand why you see so much new retail space being built and so much vacate retail space. What a waste of resources.
I noticed that since Xmas the local Barnes & Noble has stopped carrying a LOT of periodicals that I happen to like and would regularly buy from them.
They’re also dedicating a LOT more space to non-book items like toys and games.
I understand that the advent of eBooks, etc, has really messed with their business model. But I really lament that their business model drove all of the Mom&Pop newstands out of business (and I patronized those Mom&Pops up to the point where I could only find the magazines I was interested in elsewhere).
It’s probably too much to hope for a resurgence in the small and niche local retailer segment ...
We’re just copying China’s ghost cities and keeping people working. Consider it the new ditch digger job!
I was at a Books a Million at Christmas and finding the actual BOOKS...was confusing to the say the least. Lots of toys and such for the kids. I recall pondering ...
Where did imagination go?
So much for the Consumer driven recovery. Because of ObamaCare, we have $8K less discretionary income this year.