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A ‘tsunami’ of store closings expected to hit retail
Published: Wednesday, 22 Jan 2014 | 12:58 PM ET
Get ready for the next era in retail—one that will be characterized by far fewer shops and smaller stores.
On Tuesday, Sears said that it will shutter its flagship store in downtown Chicago in April. It’s the latest of about 300 store closures in the U.S. that Sears has made since 2010. The news follows announcements earlier this month of multiple store closings from major department stores J.C. Penney and Macy’s.
Further signs of cuts in the industry came Wednesday, when Target said that it will eliminate 475 jobs worldwide, including some at its Minnesota headquarters, and not fill 700 empty positions.
Experts said these headlines are only the tip of the iceberg for the industry, which is set to undergo a multiyear period of shuttering stores and trimming square footage.
Shoppers will likely see an average decrease in overall retail square footage of between one-third and one-half within the next five to 10 years, as a shift to e-commerce brings with it fewer mall visits and a lesser need to keep inventory stocked in-store, said Michael Burden, a principal with Excess Space Retail Services.
The owner of sears bought the company and kmart for the real estate and has run it into the ground.
The two stores have been running themselves down for a good many years, no loss to see them go.
it’s sadd but how can any store last in any of these towns when we have big stores on the hi way. I love the old stores but the rent is to high.
I also liked the old stores (Drapkins, Winchells, Woolworths, Sealfons, McHughs, Al & Harrys etc.)
The malls put pressure on these stores and The banks came in and bid up the rents. Not sure what ‘act’ will follow that as they close up when their lease is up for renewal.
I remember when there were gas stations on every corner of Franklin ave (Texaco, arco, Amoco, Philips 66, mobil and a few more. And Liquor stores in the CBD. Its a change. For better or for worse.