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The closure of thousands of retail chain stores last year and this year, with many more to come – from big anchor tenants such as Macy’s to smaller stores such as Payless Shoes – and the bankruptcies and debt restructurings ricocheting through the industry are having an impact on retail malls. And mall investors – that may include your retirement account – are getting crushed.
The commercial real estate industry has been claiming that these shuttered retail spaces are being converted into restaurants or fitness centers or smaller shops or whatever. And zombie malls are leasing out their parking lots to car dealers to store their excess new vehicle inventory, and that everything is going to be fine.
The devastation in the US retail sector is accelerating in 2017, and in addition to the surging number of brick and mortar retail bankruptcies, it is perhaps nowhere more obvious than in the soaring number of store closures.
H/t reader kevin a.
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Consumerism has long been a defining element of American society, but retail giants are now shutting down thousands of their locations amid a long-anticipated “retail apocalypse,” as Business Insider describes it.
The outlet reports that over the next couple months, more than 3,500 stores are expected to close:
“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.”
Flashback from 2013:
H/t reader squodgy:
“It’s all DOWNWARD….
We’ve been ridiculed with our realistic forecasts for being depressing.
The fact is we are being honest and realistic. So F.U. to the “Unbelievers”.”
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Mar 2, 2017
Silver and gold was slammed today. Initial jobless claims is at its lowest point in 44 years. BCBG filed bankruptcy. The art bubble is popping. CalPers threatens to slash pension benefits. Trump sent a message to every American that the economy is collapsing. Rickards, Stockman say Trump will not be able to avoid the debt bomb that is ready to go off. The Fed has set the stage to bring down the economy. BofA has analyzed the market and makes a prediction that the economy will collapse in the second half of this year.
H/t reader squodgy.
‘The Great Economic Collapse’ coming to a country near you, …
… as planned by …
And it will happen exactly, when these bastards press this button …
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… or hair coloring on Donald Trump. Neither one helps.
Do you scratch your head as I do, when you read one story in the news that says retail sales grew in June and then read another that says retail sales sucked like a drain hole? Often things are not what they seem.
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Previously “pent-up” real-estate demand to “fizzle.”
Retail landlords are on edge. Their tenants in malls across America are reporting awful revenues and earnings, and they’re shuttering stores, and some are going bankrupt. And they’re all getting their clocks cleaned by ecommerce.
Ecommerce sales in the first quarter jumped 15% from a year ago to $86.3 billion, not seasonally adjusted, or $92.8 billion seasonally adjusted, the Census Bureau reported today. They accounted for 7.7% of total retail sales. Over the last four quarters, ecommerce also jumped 15%, to 354.3 billion.
Barack Obama recently stated that anyone that is claiming that America’s economy is in decline is “peddling fiction“. Well, if the economy is in such great shape, why are major retailers shutting down hundreds of stores all over the country?
Last month, I wrote about the “retail apocalypse” that is sweeping the nation, but since then it has gotten even worse. Closing stores has become the “hot new trend” in the retail world, and “space available” signs are going up in mall windows all over the United States. Barack Obama can continue huffing and puffing about how well the middle class is doing all he wants, but the truth is that the cold, hard numbers that retailers are reporting tell an entirely different story.
Continue to prepare for (total) collapse.
Prepare for collapse.
Major retailers in the United States are shutting down hundreds of stores, and shoppers are reporting alarmingly bare shelves in many retail locations that are still open all over the country. It appears that the retail apocalypse that made so many headlines in 2015 has gone to an entirely new level as we enter 2016.