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A 'tsunami' of store closings expected to hit retail
CNBC ^ | 1/22/2014 | Krystina Gustafson

Posted on 01/22/2014 1:59:17 PM PST by EBH

Get ready for the next era in retail—one 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 ...


TOPICS: Business/Economy; Extended News; Government
KEYWORDS: bho44; bhoeconomy; chicago; christmasshopping; deflation; illinois; jcp; jcpenney; macys; minnesota; retail; retailstores; sears; serviceeconomy; storeclosings; target
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So much for the 'service economy!'
1 posted on 01/22/2014 1:59:17 PM PST by EBH
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To: EBH

The beginning of the end?


2 posted on 01/22/2014 2:01:30 PM PST by Viennacon
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To: EBH
Realistically I knew "the service economy" was still born. We don't do service.
3 posted on 01/22/2014 2:01:34 PM PST by null and void (We need to shake this snowglobe up.)
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To: EBH

They’re are going the way of Montgomery Wards.


4 posted on 01/22/2014 2:01:37 PM PST by SandRat (Duty - Honor - Country! What else needs said?)
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To: EBH

Brick and mortar is so 20th Century.


5 posted on 01/22/2014 2:01:55 PM PST by MNnice
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To: EBH

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.


6 posted on 01/22/2014 2:02:43 PM PST by Buckeye McFrog
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To: EBH

Look on the bright side there will be lots of new jobs preparing tax returns.

:o


7 posted on 01/22/2014 2:03:09 PM PST by TexasFreeper2009 (Obama lied .. the economy died.)
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To: Viennacon

Couple it with 0bamacare...could be...


8 posted on 01/22/2014 2:05:26 PM PST by EBH ( The Day of the Patriot has arrived.)
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To: EBH

Retail stinky jobs is the last twig holding up the bankster’s house.


9 posted on 01/22/2014 2:05:55 PM PST by SaraJohnson
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To: EBH

10 posted on 01/22/2014 2:08:42 PM PST by martin_fierro (< |:)~)
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To: Buckeye McFrog

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...


11 posted on 01/22/2014 2:11:12 PM PST by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: SaraJohnson

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.


12 posted on 01/22/2014 2:11:34 PM PST by EBH ( The Day of the Patriot has arrived.)
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To: Viennacon

I would say so.


13 posted on 01/22/2014 2:11:39 PM PST by sport
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To: SandRat

Companies come, companies go. Adapt or Die.


14 posted on 01/22/2014 2:12:42 PM PST by dfwgator
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To: EBH

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.


15 posted on 01/22/2014 2:16:34 PM PST by SatinDoll (A NATURAL BORN CITIZEN IS BORN IN THE USA OF USA CITIZEN PARENTS)
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To: Buckeye McFrog
There is more vacant retail space out there than we’re ever gonna fill again

True, that, imho.

16 posted on 01/22/2014 2:17:51 PM PST by tomkat
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To: EBH

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.


17 posted on 01/22/2014 2:18:59 PM PST by VideoPaul
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To: SatinDoll

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.


18 posted on 01/22/2014 2:19:56 PM PST by EBH ( The Day of the Patriot has arrived.)
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To: MNnice

Yep, ask Amazon.


19 posted on 01/22/2014 2:20:26 PM PST by Blood of Tyrants (Haven't you lost enough freedoms? Support an end to the WOD now.)
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To: null and void

Manufacturing is production. Some services are productive but much of it is just transactions, non-productive or low-production activity.


20 posted on 01/22/2014 2:21:01 PM PST by Ray76 (How modern liberals think: http://www.youtube.com/watch?v=eaE98w1KZ-c)
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To: SaraJohnson

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.


21 posted on 01/22/2014 2:23:51 PM PST by warchild9
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To: dfwgator

BINGO.

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.


22 posted on 01/22/2014 2:24:16 PM PST by LeonardFMason (LanceyHoward would AGREE)
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To: EBH

Good job, Barry. WAY TO GO!


23 posted on 01/22/2014 2:26:32 PM PST by Lazamataz (Early 2009 to 7/21/2013 - RIP my little girl Cathy. You were the best cat ever. You will be missed.)
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To: LeonardFMason
Not even 20 years later it is a footnote in history.

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.

24 posted on 01/22/2014 2:27:42 PM PST by ssaftler (Obama speaking is like the Fat Lady warming up: "Me Me Me Me Meeee")
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To: SatinDoll
The gold items that I am presently selling on Ebay, if they do no sell tomorrow, will be going to the metal scrapper.

How do I find your items? E-Bay username? Thanks.

25 posted on 01/22/2014 2:29:20 PM PST by Drago
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To: dfwgator
Companies come, companies go. Adapt or Die.

Nations come, nations go. Adapt or die.

26 posted on 01/22/2014 2:29:28 PM PST by Lazamataz (Early 2009 to 7/21/2013 - RIP my little girl Cathy. You were the best cat ever. You will be missed.)
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To: Lazamataz

That too.


27 posted on 01/22/2014 2:29:40 PM PST by dfwgator
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To: LeonardFMason

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.


28 posted on 01/22/2014 2:30:16 PM PST by NewHampshireDuo
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To: EBH

NBC, ABC Gush Over Michelle Obama’s 50th Birthday: ‘Hottest Party In Town’

29 posted on 01/22/2014 2:34:52 PM PST by SkyPilot
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To: MrEdd
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...

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.

30 posted on 01/22/2014 2:36:56 PM PST by SkyPilot
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To: Lazamataz

Wave number 2 is coming through. Those retail closings in 2009 were just the tip of the iceberg.


31 posted on 01/22/2014 2:42:25 PM PST by EBH ( The Day of the Patriot has arrived.)
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To: TexasFreeper2009

And in health care... dealing with the Obamacare bureaucracy.

Hey, service jobs!


32 posted on 01/22/2014 2:43:42 PM PST by dhs12345
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To: martin_fierro

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.


33 posted on 01/22/2014 2:47:31 PM PST by dhs12345
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To: martin_fierro

Looks like some of the Best Buy web pages I’ve seen.


34 posted on 01/22/2014 2:48:30 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Lazamataz
Ya. Unfortunately, the figure it out until it is too late.
35 posted on 01/22/2014 2:48:44 PM PST by dhs12345
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To: SkyPilot
Lol. Okay. That was one that slipped through security.
36 posted on 01/22/2014 2:50:31 PM PST by dhs12345
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To: EBH

These are stores whose headquarters put their social agendas before their merchandise. Too bad those they support don’t support them. /s


37 posted on 01/22/2014 2:50:35 PM PST by stars & stripes forever (Blessed is the nation whose God is the Lord.)
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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.


38 posted on 01/22/2014 2:51:09 PM PST by Not gonna take it anymore (If Obama were twice as smart as he is, he would be a wit)
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To: EBH

“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.


39 posted on 01/22/2014 2:54:40 PM PST by CorporateStepsister (I am NOT going to force a man to make my dreams come true)
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To: LeonardFMason

“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.


40 posted on 01/22/2014 2:55:41 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: VideoPaul

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.


41 posted on 01/22/2014 2:55:47 PM PST by CorporateStepsister (I am NOT going to force a man to make my dreams come true)
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To: Not gonna take it anymore

There building the largest mall in Florida in Sarasota….I wonder if they can fill it??? Stores will probably close in the older malls


42 posted on 01/22/2014 2:59:59 PM PST by Hojczyk
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To: Not gonna take it anymore

“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.


43 posted on 01/22/2014 3:01:05 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: EBH
Could it be that people except for those with no financial restraints are buying less stuff? Such a large percentage of ones income goes to things that have no substance....technology, insurance, paying off education loans etc. People aren't buying real physical books, movies, music. Many sold their jewelry to pay the bills. It's been written that many younger people aren't even interested in owning cars. The local businesses that are surviving are restaurants and grocery stores.

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?

44 posted on 01/22/2014 3:08:34 PM PST by grania
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To: EBH
...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.

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!

45 posted on 01/22/2014 3:11:50 PM PST by Gritty (Nobody wants to hear about American exceptionalism when the issue is American ineffectualism-MSteyn)
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To: Buckeye McFrog
There is more vacant retail space out there than we’re ever gonna fill again.

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.

46 posted on 01/22/2014 3:14:42 PM PST by Lorianne (fedgov, taxporkmoney)
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To: EBH

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 ...


47 posted on 01/22/2014 3:18:46 PM PST by tanknetter
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To: Lorianne

We’re just copying China’s ghost cities and keeping people working. Consider it the new ditch digger job!


48 posted on 01/22/2014 3:23:46 PM PST by EBH ( The Day of the Patriot has arrived.)
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To: tanknetter

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?


49 posted on 01/22/2014 3:25:36 PM PST by EBH ( The Day of the Patriot has arrived.)
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To: EBH

So much for the Consumer driven recovery. Because of ObamaCare, we have $8K less discretionary income this year.


50 posted on 01/22/2014 3:37:05 PM PST by griswold3 (Post-Christian America is living on borrowed moral heritage)
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