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The US retail sector may post a maximum, and with the changing demographics and online sales competition, once popular shopping and Department Store can become much like the once dominant species of our pale blue dot. Like the dinosaurs, the department store model looks like it will soon be past. Let’s talk, as there is more evidence than not to take up this prediction.
The Kansas City Business Journal had a piece called “Study: Department must prune mall space to flourish again,” published on April 25, 2016 which states: “A real estate research firm says supermarkets to close hundreds of pages – about 20 percent of all anchor space – shopping malls in the United States to restore their productivity for a decade, the Wall Street Journal reports, for example, Sears Holdings Corp. should shutter 300 stores, or 43 percent of the total of his, to. achieve sales per square foot it had in 2006, according to a study Green Street advisors. This is so even though the Sears and other retailers have closed hundreds of stores in recent years with the rise of online sales and discounters.
at the same time, the Louisville Business Journal had to say article recently titled “Major retailer plans to close all Louisville-area its stores except one,” published on April 22, 2016, as follows “Kmart is planning to close all but one of its stores in the Louisville area in summer. The parent company’s retail chain, Sears Holding Corp., announced Thursday that a total of 78 Kmart and Sears stores will be closed, and that the number includes four Louisville-area Kmart stores, WDRB TV reports. “
And what was the Wall Street Journal piece said in addition to all this Well, read it for yourself ;?” Glut Plagues Department, “by Suzanne Kapner – and recommendations from the research enterprise. In the United States it has to be at least closing 800 anchor tenant supermarkets for profitability to stabilize, which would be about a fifth of all major department stores Can you say; Ouch for the retail market, I think this !?’s what everyone from the retail stock fund common saying about now, and one would have to ask why ;? Post Why is this happening
Well? Consider the exuberant growth in recent years, and an increase in online sales, the expansion of Wal-Mart superstores and spendable income Americans falling – because college tuition costs, health insurance, and increased costs of things once not heard of, but now the necessities of modern life, such as: smart phones, cable TV, etc. Wages and salaries on average have been stagnant and even moderate side zero inflation flat in their growth. The world is changing and the retail world must adapt or die – it is no longer a choice in the matter. Please think about this.
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Source by Lance Winslow