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Saturday, March 25, 2017

The "Retail Apocalypse" Is Officially Descending Upon America

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."

BI 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.”

Some stores, like Bebe and The Limited, are closing all of their locations to focus more on online sales. Other larger chains, like JC Penney, are “aggressively paring down their store counts to unload unprofitable locations and try to staunch losses,” Business Insider notes. Sears and K-Mart are following a similar trajectory moving forward.

Sears is shutting down 150 Sears and Kmart locations, about 10% of their shops. JCPenney is shutting down 138 stores, about 14% of their total locations.

These closures are the consequence of several different factors. First, the United States has more shopping mall square footage per person than other parts of the world. In America, retailers reserve 23.5 square feet per person; in Canada and Australia, the countries with the second- and third-most space have 16.4 and 11.1, respectively.

Another reason retail brick and mortars are failing is the growth of e-commerce. Between 2010 and 2013, visits to shopping malls declined 50%, according to data from real estate research firm Cushman and Wakefield. Meanwhile, online sales from huge online outposts, like Amazon, have exploded.

Back in 2015, Forbes observed this trend:

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5 comments:

  1. I am not that well versed in economics to know what all this means but I stopped shopping in those stores years ago, mainly due to rude employees and don't-give-a-damn management. JC Penny's used to have pretty good deals on men's clothing but trying to get help from any associate was near impossible and the checkout lines were slow and the employees acted like you were "bothering" them. And don't get me started on what it was like taking an item back - even with the full receipt and all.

    I think most people dislike poor customer service and will almost always stop shopping at a store that displays it. Manners, courteousness, civility, and other attributes that leave customers satisfied and wanting to return are long gone - so it is really no surprise that these stores are fading.

    I don't do a whole lot of shopping on line but I can see the advantages, especially when in Salisbury you are risking robbery, rape car jackings, and the like - even in broad daylight. Much safer and easier at the Outlets in West Ocean City.

    Well, this is just my personal opinion anyway. Please feel free to share your comments about this article. Thanks. the Kilbirnie Kid

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  2. This was predicted Many Years Ago...The reasons are numerous but understandable...

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  3. BS Blame the ACA for picking the citizens pockets and leaving them with less money to spend. Any other excuse is nonsense

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  4. We still have our Thrift & Pawn shops and our Dollar stores. These are the first places I stop when I need something.

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  5. Never fear Don the Con will MAGA!!!🤣🤣🤣

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