As you will see below, it is being projected that about a third of all shopping malls in the United States will soon close, and we just recently learned that the number of “distressed retailers” is the highest that it has been since the last recession. Honestly, I don’t know how anyone can possibly believe that the U.S. economy is in “good shape” after looking at the retail industry. In my recent article about the ongoing “retail apocalypse“, I discussed the fact that Sears, J.C. Penney and Macy’s have all announced that they are closing dozens of stores in 2017, and you can find a pretty comprehensive list of 19 U.S. retailers that are “on the brink of bankruptcy” right here. Needless to say, quite a bloodbath is going on out there right now.
But I didn’t realize how truly horrific things were for the retail industry until I came across an article about mall closings on Time Magazine’s website…
About one-third of malls in the U.S. will shut their doors in the coming years, retail analyst Jan Kniffen told CNBCThursday. His prediction comes in the wake of Macy’s reporting its worst consecutive same-store sales decline since the financial crisis.
Macy’s and its fellow retailers in American malls are challenged by an oversupply of retail space as customers migrate toward online shopping, as well as fast fashion retailers like H&M and off-price stores such as T.J. Maxx. As a result, about 400 of the country’s 1,100 enclosed malls will fail in the upcoming years. Of those that remain, he predicts that about 250 will thrive and the rest will continue to struggle.
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14 comments:
This should be a sign for all the bubblegum chewing freaks that thought Obama was such a grand President. The economy was in the dumper and yet people continued to pimp for him and then Clinton. People who did this should be ashamed of themselves.
This doesn't take a rocket scientist to figure out! Many people are buying online. From groceries to cars and in between. Retail stores cannot compete whit companies like Amazon that have lower cost and pass on savings to their customers.
Wonder how long the Centre's empty building and lot will be allowed to decay before the city gets off its ass and does something useful? Salisbury Mall sat delapidated for how long before the building and neighborhood was put out of its misery?
HAHAHA how about the 94th street mall in OC which has sat empty for decades. The asbestos' cleanup alone, good grief will be enormous!
Such a nice central location, yet an empty eyesore at the shore!
945 with ID theft on the rise and malware put on people's computers gratis of our gov which makes that info even more vulnerable, how long you think that'll last? It's getting to the point where it's a scary venture to use your credit card at the gas ⛽️ station because people are remotely scanning credit card information. Wait until Amazon has to charge taxes in all 50 and we'll see how that rolls.
Also explain why Walmart's parking lot is like the beltway during rush hour every day all day long? People shop in stores the problem is people don't shop at mall retailers because they can't AFFORD TO! Why? The economy has been shite for 8+ years.
With all the crap that goes on at malls maybe it's better that they do close.
I don't shop at the mall because of gang presence and feeling unsafe.
My thought the last time I entered a large mall on Rt 100 in the Baltimore area was "is the food court safe to sit in?" I don't feel safe in malls anymore. I'm not sure that is justified....but I cant help but feel that way. Do you think it is justified?
Their Percentage Leases are way too high ...closing them !!
Turn them into schools instead of paying 100 million to build one.
I have no sympathy for these retailers the way I see it they did it to their selves. They became greedy and their online presence has cut into their brick and mortar sales and with so much competition they cannot all survive. Right now the consumer is the only one winning as these retailers continue to fight over who is going to have the best rock bottom price. If they want to maintain their customers how about listening to what the customer wants and if you have an item that has been a best seller and your customers still want and are willing to buy don't discontinue it.
"Turn them into schools instead of paying 100 million to build one."
Wow. Good idea.
Or medical service complexes.
I call BS on the entire story...yes malls in areas that are not doing well financially are failing...the shore on a whole is a gods example...find an area where the Economy is booming like the one I live in now and it's a completely different deal...within 10 miles we have 2 malls with nearly 300 stores and 100 restaurants between the two....plus an outlet mall with nearly 100 stores and restaurants....all 3 doing just fine....it's about area....economics and population...the shore has neither....
I watched a documentary the other day concerning this. A lot of it has to do with the fact that household income has shrunk since the great recession started in 2008. Also people are now driving less miles because of this, and the convenience of online shopping like Amazon. Obama Care also did not help matters. There is less disposable income out there. People are also now starting to save what little money they have. I think shopping malls have had their day. I have noticed that some towns, like Berlin and Easton, have started to make a comeback with specialty shops and restaurants. I would personally love to see main street return to small town america. Even if the economy get better, I don't look for the big shopping malls to return.
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