“Tsunami” of retail store closings expected. Sears stock has been strong based, from what I understand, on its control of so much valuable mall space. If malls are due for a sharp contraction and stores will be much smaller, as this analysts (and others) predict, then that unrealized potential would seem to be set to continue to be unrealized, to the bitter end.
I know nothing about bricks and mortar retail – I’m pretty much an online shopper and shun malls – but I’m always interested in what’s happening with Eddy Lampert, even if he has fled Greenwich for Florida. As go malls, goes Eddie, no?
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.