Major U.S. Retailers Are Closing More Than 6,000 Stores

zerohedge ^ | 05/02/2015 | Michael Snyder

[dennisw]

Submitted by Michael Snyder via The Economic Collapse blog,

If the U.S. economy really is improving, then why are big U.S. retailers permanently shutting down thousands of stores? The “retail apocalypse” that I have written about so frequently appears to be accelerating. As you will see below, major U.S. retailers have announced that they are closing more than 6,000 locations, but economic conditions in this country are still fairly stable. So if this is happening already, what are things going to look like once the next recession strikes? For a long time, I have been pointing to 2015 as a major “turning point” for the U.S. economy, and I still feel that way. And since I started The Economic Collapse Blog at the end of 2009, I have never seen as many indications that we are headed into another major economic downturn as I do right now. If retailers are closing this many stores already, what are our malls and shopping centers going to look like a few years from now?

The list below comes from information compiled by About.com, but I have only included major retailers that have announced plans to close at least 10 stores. Most of these closures will take place this year, but in some instances the closures are scheduled to be phased in over a number of years. As you can see, the number of stores that are being permanently shut down is absolutely staggering…

The truth is that middle class U.S. consumers are tapped out. Most families are just scraping by financially from month to month. For most Americans, there simply is not a whole lot of extra money left over to go shopping with these days.

In fact, at this point approximately one out of every four Americans spend at least half of their incomes just on rent…

More than one in four Americans are spending at least half of their family income on rent – leaving little money left to purchase groceries, buy clothing or put gas in the car, new figures have revealed.

A staggering 11.25 million households consume 50 percent or more of their income on housing and utilities, according to an analysis of Census data by nonprofit firm, Enterprise Community Partners.

And 1.8 million of these households spend at least 70 percent of their paychecks on rent.

The surging cost of rental housing has affected a rising number of families since the Great Recession hit in 2007. Officials define housing costs in excess of 30 percent of income as burdensome.

For decades, the U.S. economy was powered by a free spending middle class that had plenty of discretionary income to throw around. But now that the middle class is being systematically destroyed, that paradigm is changing. Americans families simply do not have the same resources that they once did, and that spells big trouble for retailers.

As you read this article, the United States still has more retail space per person than any other nation on the planet. But as stores close by the thousands, “space available” signs are going to be popping up everywhere.

closing:

180 Abercrombie & Fitch (by 2015)

75 Aeropostale (through January 2015)

150 American Eagle Outfitters (through 2017)

223 Barnes & Noble (through 2023)

265 Body Central / Body Shop

66 Bottom Dollar Food

25 Build-A-Bear (through 2015)

32 C. Wonder

21 Cache

120 Chico’s (through 2017)

200 Children’s Place (through 2017)

17 Christopher & Banks

70 Coach (fiscal 2015)

70 Coco’s /Carrows

300 Deb Shops

92 Delia’s

340 Dollar Tree/Family Dollar

39 Einstein Bros. Bagels

(more at source)

[ProtectOurFreedom]

You described me to a tee. I can find exactly what I want online, buy with a few clicks, have it delivered to our house or to an Amazon “locker” nearby, and never have to set foot I a store. I love it!

[ProtectOurFreedom]

Agree...disaster is always just around the corner. It must sell.

[RipSawyer]

In this area Dollar General seems to be thriving at the expense of the other dollar stores which don’t seem to be doing so well.

[Nowhere Man]

Lots of other things disappearing from the drug store. No more flowers, watchbands, camera supplies, small electronics, pet supplies, gardening supplies and tools, no automotive; last week my wife couldn’t find disposable drinking straws of the type she liked. They used to carry 4 or 5 different varieties, now they are down to one basic straw. Basically we are starting to look like the old Soviet Union.

Yeah, I've noticed things like that too. BTW, I talked to an online friend in France and he told me that back in the 1990's when he came over here on business, his friends over there were ask him to bring over various items from here to there because they were cheaper here or not available over there. Also, he noticed that a lot of cars here at the time were newer and people bought newer cars at shorter intervals. Today, he says, his American friends ask him to bring things from France they can't geth ere and he told me too where he noticed a lot of people here are keeping their cars much longer and compared to France, our infrastructure is crumbling. I often feel like we are living, in some ways, like they did in the Soviet Union of the Bhreznev Era.

[ProtectOurFreedom]

I was just telling my son today about the old Sears store at Geary & Masonic in San Fran today when we drove by the new "City Target SF West" and Best Buy stores -- in the old Sears building. Of course, BB is a dead man walking, too and won't last near as long as Sears did at the location.

[ProtectOurFreedom]

...now they are down to one basic straw. Basically we are starting to look like the old Soviet Union.

The Soviet Union didn't have 239 different types of toothpaste and 151 different types of toothbrushes. The biggest problem I have is finding plain old toothpaste and a plain old toothbrush to slather it on. It takes me 35 minutes to explore the endless varieties to find the basics now. And they'll all be different next month, so don't get too attached to one brand or model.

[ProtectOurFreedom]

I used to keep the Amazon corrugated cardboard boxes just in case I needed to send something. We were drowning in them. When the cardboard avalanche finally did in poor Mr. Whiskers, we finally put them all in the recycle bin, too. It only took three weeks to get them gone.

[upchuck]

It’s a design your own teddy bear store.

And what do Santa's Elves have to say about this? No wonder they are closing stores. The Elves' union is very strong.

[bonfire]

Dillard’s as well. When Dillard’s leaves a mall..it’ all over but the shoutin’.

btw, Ross used to be great back in the 90’s. Packed to the gills with great off price clothes, housewares, shoes, etc. Now it’s cheap, skanky merchandise. I use to hit Ross once a week and even bought prom dresses there for my daughter that were stunning. Shelves and racks are practically empty now. sigh..

[bonfire]

TJMaxx is always packed with customers here. HOME GOODS is so crowded I dread going there. They are doing something right.

[GrinFranklin]

Is a book really “used” when read once and then put on eBay or Craigslist? I may have superhuman talents, but I’m able to read the same words in a book after somebody else read it.

[Mike Darancette]

“If they had kept it and transitioned to online, it would be bigger than Amazon ever dreamed of.”

That’s a really good question. When Sears didn’t respond to the opportunity Amazon expanded its internet book operation to other merchandise.

[Comment Not Approved]

I’m pretty frugal as well. Costco once a month and thrift store clothes when I can find them. Cook everything from scratch mostly.

I am splurging this year though ... on a new shooting range.

[NonValueAdded]

And Goodwill is building like crazy around here. The are spending big bucks on the facilities, too, not just opening storefronts. Hard to compete with a company whose COGS is near zero.

[Mike Darancette]

You put Mr. Whiskers in the recycle bin?

[GizzyGirl]

Consignment stores are growing and parking lots are active around my area as well. I’ve been checking them first before buying new lately and have been quite surprised with the quality of the inventory. Paying a fraction of original cost is both rewarding and satisfying lately — I find I like the challenge of used first, new as seldom as possible/practical.

[ProtectOurFreedom]

I think we accidentally shipped him back to Amazon. We’re still waiting for a refund or replacement.

[AllAmericanGirl44]

Bkmk

[trebb]

Too many stores, too much clothing in people’s closets. Many people could last 20 years with the stuff they have.

I have T-Shirts 20 years old...most relegated to working out (who needs designer workout gear?) or doing tasks too dirty for my good jeans and T-Shirts...

One of the great things about retirement is that I can get by with one pair of nice slacks and a couple dress shirts - they spend 360+ days a year in the closet though.

[sheana]

I shop the clearance racks at high end outlet stores. Nordstrom’s Rack, Saks Off Fifth, Neiman Marcus Last Call. I buy lots of high end clothing for no more than I would pay at Target.
The key is to visit them pretty often since you never know what they’ll have.