Retail Apocalypse: 465 Store Closures In 48 Hours

Retail Apocalypse: 465 Store Closures In 48 Hours
Sat, 03/02/2019 - 20:35
Following government shutdown delays, data for Dec and Jan spending and income collapsed on Friday. This was one of the most significant drops in consumer spending since the financial crash.
As if the situation wasn't already dire enough, US consumers dialed back their spending in the last several months has put a sizeable dent into sales growth and foot traffic at US malls.
Last month, we noted that the "Retail Apocalypse" Isn't Over: It Is Only Just Getting Started".
We were right.
Fox 5 NY is reporting that major chains such as Gap, JCPenney, Victoria's Secret and Foot Locker have all announced massive closures, totaling more than 465 stores in the last 48 hours.
All four companies reported its fourth-quarter results last week for the holiday period, with three of them (Gap, JCPenney and Victoria's Secret) reporting a sizeable decline in same-store sales, while Foot Locker had modest growth.
With somewhat decent growth, because apparently, consumers still need to walk, Foot Locker shocked investors Friday with 165 store closures across the country.
That comes less than 24 hours after Gap told investors it would close 230 over the next several years after the company's same-store sales plunged 7% during the holiday quarter.
If the hemorrhaging wasn't enough, JCPenney was back on the chopping block with 18 more department store closures through the second half of this year, including three from January.
Bob Phibbs, CEO of New York-based consultancy the Retail Doctor, believes JCPenney will announce another round of stores closures in the second half.
"It is mind boggling that JC Penney still thinks they have time when the clock has run out and there’s no real plan. Closing 18 stores is barely a drop in the bucket of JC Penney’s more than 850 stores. If this was a big, bold effort to reinvigorate the brand, they would have announced they were closing hundreds of stores and investing in an outstanding experience at their other locations" Phibbs told FOX Business.
That builds on recent store closure announcements by Gymboree, Payless ShoeSource, Charlotte Russe and Ann Taylor, to name a few. Even Tesla last week announced it would be closing most of its US showrooms.
A whopping 4,500 store closures have been announced by retailers in the first several months of this year. The number is expected to increase in the coming months, as growth prospects for the US economy are expected to be at near zero for the first quarter.
https://www.zerohedge.com/news/2019-03-02/retail-apocalypse-465-store-closures-48-hours
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On 3/3/2019 8:14 AM, Home Guy wrote:

My wife wanted to look for a particular item carried by a store at a mall. We've not been to a mall in years.
This mall was a very nice, very large, two story place, but it was devoid of customers. This was on a Wednesday and while not like a weekend, no store was making money that day. Since is was a bit after noon, we decided to have lunch. The restaurant can hold about 100 customers, but there were a total of 6.
Where we lived last year, the Macy's store at the mall is now a medical center.
Times have changed, malls are dead.
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Sure things are changing. Companies just have to keep up. Places that do mainly mail order is the way to make money now. You only have a couple of big warehouses to keep up. Think in terms of square footage. To have a store in every town of say over 30,000 people it takes a lot of sqft if you add them all up. Then each store has people that are just standing around most of the day.
Some companies seem to have it almost backwards. For a while Sears and some others were big catalog sales. Then they started opening stores in many towns, now they are all but out of business.
With the shipping being what it is today,you can get most items in 2 to 4 days. If you do not like the item, many places have free shipping to take it back. There was/is a tax savings in many areas. That was an automatic savings of 3 to 7 percent in many areas for the customers.
Another thing that I don't recall anyone mentioning is the thrill of going to the mail box or looking out the door each day just to see what you get. Sort of like unwrapping a present . I have heard what is called the Ikea effect. The thrill of putting together your own furnature from boxes instead of buying already put together furnature that is often better quality.
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says...

Never seen one do it like that. Any well run operation varys the number of staff by the time of day so that doesn't happen.
One of our supermarkets appears to have just 2 people there first thing when it has just opened and didn't even have one to run the self checkouts so those open later.

Often the frustration of doing that and failing to do it.

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On 03/03/2019 09:22 AM, Ralph Mowery wrote:

I read last week that Amazon is thinking about moving all your thrills to the same day, you pick the day. That makes sense to me. There are very few times when I really need something in two days. It's only when it takes two or three weeks that I get upset.
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I don’t get upset but do find the typical month from aliexpress to be longer than I would prefer. God knows why it takes so long.
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