Posted on 05/03/2015 4:02:11 PM PDT by 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)
Also laying off or closing altogether but not listed are K-Marts, Krogers, Albertsons and Pier One Imports.
Post 17
It must be a big ego trip at chain store corporate offices to expand, expand, expand. Getting the company deeper in debt must also be an ego boost.
A map of these closings would tell us where the jobs ain’t.
I am pretty sure I have only been in about three of these stores - Barnes & Noble and the couple of dollar stores listed at the end of the list.
“...the local Sears...”
You used to be able to buy everything, and I mean everything throught Sears catalog sales. If they had kept it and transitioned to online, it would be bigger than Amazon ever dreamed of.
Not only are stores closing, shelves are emptying. We’ve noticed more and more things “no longer being carried.”
Just today we were in the area’s largest drugstore, shopping after church, and overheard a discussion between the manager and a customer. She was asking where the matches were, and the manager replied that they no longer carried matches because with the increase in prices and the decrease in people smoking, they couldn’t make a profit selling them any more.
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.
Good news, 2016 is coming.
You know it’s getting bad when Dollar Tree and Family Dollar are closing stores.
That with the downturn in the oil patch, can’t be good.
At least 1/2 the time (so far) shirts are the wrong size/color and returns are a pita.
Guitar string, disc drives, stuff like that? Never leave the house for 'em.
Never been to any of those. I wear jeans tshirts and “tennis” shoes and ball cap. All from Walmart. I shop at CVS, Walmart, Kroger and Tom Thumb when any of them have a sale. I hit the Salvation Army store and Salvage Grocery once a month. I don’t care about labels or what’s popular to wear or eat. Day old hamburger meat from Walmart still makes a better cheaper burger than MCdonalds or one of those other places.
I do remember Ben Franklin, and Woolworth, we still have a local Sears.
“...the local Sears...”
You used to be able to buy everything, and I mean everything throught Sears catalog sales. If they had kept it and transitioned to online, it would be bigger than Amazon ever dreamed of.
Yep. They fumbled too many times.
The Patel family will be devastated.
I’m running into more and more of the parts houses running short on common fasteners and the like.
To get enough of say 1/4 20 1-in. around here, it takes a visit to advance, autozone, and sometimes pep boys for. Bolts will be at one of them but one pack, more bolts and some nuts at the other, and if I need washers, visit the third. Tractor Supply is hit and miss. I could buy the huge assortment packs but kind of pointless when I need one or two elements.
I found an outfit called Bolt Depot and ordered from them. No complaints.
They way overbuilt Dollar Tree/Family Dollar. There’s one on every corner. But Chico’s???? NOooooooo. Okay, I maybe go once every two or three years. I’m surprised Barnes and Nobles still exists at all given Amazon. People go there to look at the book and then go home and buy it on line. I’ve started buying clothes on line. If I like a brand, I find it on line and order what I see. If I hate it, I send it back. Most places have free shipping.
The Staples/Office Depot closing is not surprising since Staples bought out Office Depot. Most areas had one of each within easy driving distance so it makes sense to consolidate. Unfortunately I have already noticed the cost of the most basic office supply items increasing which doesn’t surprise me. Going to be hard for our small business to absorb. We can only pass on so much to our clients.
Bushs Fault
Bottom Dollar Food?
NOOOOOOOOOOOO
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.