U.S. RETAIL APOCALYPSE: 3,500 STORES TO CLOSE, MALL VISITS DROP 50% BETWEEN 2010-2013, 1/3 OF SHOPPING MALLS AT RISK SHUTTING DOWN
- More than 3,500 stores are expected to close in the next couple of months.
- Visits to shopping malls have been declining for years with the rise of e-commerce and titanic shifts in how shoppers spend their money. Visits declined by 50% between 2010 and 2013
- nearly a third of shopping malls are at risk of dying off as a result of store closures.
( Businesss Insider ) More than 3,500 stores are expected to close in the next couple of months.
Department stores like JCPenney, Macy’s, Sears, and Kmart are among the companies shutting down stores, along with middle-of-the-mall chains like Crocs, BCBG, Abercrombie & Fitch, and Guess.
Some retailers are exiting the brick-and-mortar business altogether and trying to shift to an all-online model.
For example, Bebe is closing all its stores — about 170 — to focus on increasing its online sales, according to a Bloomberg report. The Limited also recently shut down all 250 of its stores, but it still sells merchandise online.
Others, such as Sears and JCPenney, are aggressively paring down their store counts to unload unprofitable locations and try to staunch losses.
According to many analysts, the retail apocalypse has been a long time coming in the US, where stores per capita far outnumber that of any other country.
The US has 23.5 square feet of retail space per person, compared with 16.4 square feet in Canada and 11.1 square feet in Australia, the next two countries with the most retail space per capita, according to a Morningstar report from October.
Visits to shopping malls have been declining for years with the rise of e-commerce and titanic shifts in how shoppers spend their money. Visits declined by 50% between 2010 and 2013, according to the real-estate research firm Cushman & Wakefield.
….The nation’s worst-performing malls — those classified in the industry as C- and D-rated — will be hit the hardest by the store closures.
The real-estate research firm Green Street Advisors estimates that about 30% of all malls fall under those classifications. That means that nearly a third of shopping malls are at risk of dying off as a result of store closures.