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Major U.S. Retailers Are Closing More Than 6,000 Stores

Wednesday, July 15, 2015 8:35
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(Before It's News)

By Michael Snyder | The Economic Collapse

If the U.S. economy really is improving, then why are big U.S. retailers permanently shutting down thousands of stores?  The “retail apocalypse” that I have written about so frequently appears to be accelerating. 

As you will see below, major U.S. retailers have announced that they are closing more than 6,000 locations, but economic conditions in this country are still fairly stable.  So if this is happening already, what are things going to look like once the next recession strikes?  For a long time, I have been pointing to 2015 as a major “turning point” for the U.S. economy, and I still feel that way.  And since I started The Economic Collapse Blog at the end of 2009, I have never seen as many indications that we are headed into another major economic downturn as I do right now.  If retailers are closing this many stores already, what are our malls and shopping centers going to look like a few years from now?

The list below comes from information compiled by About.com, but I have only included major retailers that have announced plans to close at least 10 stores.  Most of these closures will take place this year, but in some instances the closures are scheduled to be phased in over a number of years.  As you can see, the number of stores that are being permanently shut down is absolutely staggering…

180 Abercrombie & Fitch (by 2015)

75 Aeropostale (through January 2015)

150 American Eagle Outfitters (through 2017)

223 Barnes & Noble (through 2023)

265 Body Central / Body Shop

66 Bottom Dollar Food

25 Build-A-Bear (through 2015)

32 C. Wonder

21 Cache

120 Chico’s (through 2017)

200 Children’s Place (through 2017)

17 Christopher & Banks

70 Coach (fiscal 2015)

70 Coco’s /Carrows

300 Deb Shops

92 Delia’s

340 Dollar Tree/Family Dollar

39 Einstein Bros. Bagels

50 Express (through 2015)

31 Frederick’s of Hollywood

50 Fresh & Easy Grocey Stores

14 Friendly’s

65 Future Shop (Best Buy Canada)

54 Golf Galaxy (by 2016)

50 Guess (through 2015)

26 Gymboree

40 JCPenney

127 Jones New York Outlet

10 Just Baked

28 Kate Spade Saturday & Jack Spade

14 Macy’s

400 Office Depot/Office Max (by 2016)

63 Pep Boys (“in the coming years”)

100 Pier One (by 2017)

20 Pick ’n Save (by 2017)

1,784 Radio Shack

13 Ruby Tuesday

77 Sears

10 SpartanNash Grocery Stores

55 Staples (2015)

133 Target, Canada (bankruptcy)

31 Tiger Direct

200 Walgreens (by 2017)

10 West Marine

338 Wet Seal

80 Wolverine World Wide (2015 – Stride Rite & Keds)

So why is this happening?

Without a doubt, Internet retailing is taking a huge toll on brick and mortar stores, and this is a trend that is not going to end any time soon.

But as Thad Beversdorf has pointed out, we have also seen a stunning decline in true discretionary consumer spending over the past six months…

What we find is that over the past 6 months we had a tremendous drop in true discretionary consumer spending. Within the overall downtrend we do see a bit of a rally in February but quite ominously that rally failed and the bottom absolutely fell out. Again the importance is it confirms the fundamental theory that consumer spending is showing the initial signs of a severe pull back. A worrying signal to be certain as we would expect this pull back to begin impacting other areas of consumer spending. The reason is that American consumers typically do not voluntarily pull back like that on spending but do so because they have run out of credit. And if credit is running thin it will surely be felt in all spending.

The truth is that middle class U.S. consumers are tapped out.  Most families are just scraping by financially from month to month.  For most Americans, there simply is not a whole lot of extra money left over to go shopping with these days.

In fact, at this point approximately one out of every four Americans spend at least half of their incomes just on rent

More than one in four Americans are spending at least half of their family income on rent – leaving little money left to purchase groceries, buy clothing or put gas in the car, new figures have revealed.

A staggering 11.25 million households consume 50 percent or more of their income on housing and utilities, according to an analysis of Census data by nonprofit firm, Enterprise Community Partners.

And 1.8 million of these households spend at least 70 percent of their paychecks on rent.

The surging cost of rental housing has affected a rising number of families since the Great Recession hit in 2007. Officials define housing costs in excess of 30 percent of income as burdensome.

For decades, the U.S. economy was powered by a free spending middle class that had plenty of discretionary income to throw around.  But now that the middle class is being systematically destroyed, that paradigm is changing.  Americans and their families simply do not have the same resources they once did, and that spells big trouble for retailers.

As you read this article, the United States still has more retail space per person than any other nation on the planet.  But as stores close by the thousands, “space available” signs are going to be popping up everywhere.  This is especially going to be true in poor and lower middle class neighborhoods.  Especially after what we just witnessed in Baltimore, many retailers are not going to hesitate to shut down underperforming locations in impoverished areas.

And remember, the next major economic crisis has not even arrived yet.  Once it does, the business environment in this country is going to change dramatically, and a few years from now, America is going to look far different than it does right now.

http://theeconomiccollapseblog.com/archives/major-u-s-retailers-are-closing-more-than-6000-stores

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Source: http://soundofheart.org/galacticfreepress/content/major-us-retailers-are-closing-more-6000-stores

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Total 11 comments
  • BEEF SUPREME

    ALL HAIL THE END OF ameriiiSCUM AS YOU KNOW IT NOW!
    And, the END of the judeo-christo-CREEP-ism that brought that part of the consumerism Plague that was the jew-nited Fraudulent Fascist states of TORTURE, MEDICAL and MILITARY TERROR

  • adetheproducer

    I would presume increase internet bases purchasing and poor economy over the last 9 years meaning less money spent in expensive high street stores would be to blame. Or it could be aliens, its always f**king aliens…..

    • lightning

      I thought it was Always “Obama’s Fault”

      • ElPolacko

        Are you being sarcastic….? IT IS OBAMA’s FAULT!!!! He started with $10 trillion in National Debt….it’s NOW almost $19 trillion. It’s called INFLATION OF THE MONEY SUPPLY and unless you are using ebonics or Common Core math… that’s 90% inflation. And you wonder why the cheapest hamburger is $6/Lb.? It’s not that things cost MORE…it’s that the money is worth less! Get It…TROLL!!! AND TELL ME…WHERE DID THAT MONEY GO???????

    • Dyan Bermeo

      Where will the poor college graduates go to get jobs now?

  • EruditeOne

    Based upon personal observations, evaluation of US (and world) demographics and population trends over the past 60 years I can attest to the accuracy of everything presented within this article. I’ve ceased buying all discretionary things I can possibly live without, direct all possible resources toward reducing debt principle and think there are others who are doing as I am. The international economy is contracting and people worldwide are learning to exist instead of live. We are only now experiencing the beginning of turmoil throughout the world. Greece will soon be followed by Italy, Spain and many other nations that refused to live within their means while they borrowed trillions from private banks. The USA is not immune to this form of irresponsibility, IS bankrupt and will NEVER repay the pile of funds borrowed from the private bankers of the world until it “nationalizes” (a.k.a. steals) private wealth in banks, IRAs, 401-Ks etc. The turmoil that will arise will, no doubt, hasten creation of the NWO.

  • RompingWillyBilly

    There are over 150,000 convenience stores alone in the United States. 150,000 into 6,000 comes to 4 percent. The sum total of all the stores would put that percent even lower. And as the online business increases, the brick and mortar stores decrease. But don’t expect that to happen to much longer. It is like the paperless society they would go on about in the 80′s. Well, is there paper?
    Look, I’m not against the end of the world. Just try to be more sober about it. These things always come out of left field like Jimmy Carter did as president. He is the very last person in the world you would expect to be the great Satan. That kind of thing.

  • The Truth Wins

    I cannot wait until all of these stores have liquidation sales. Just like Amazon Prime, JC Penney and Walmart today. Huge sales…bigger than Black Friday (how I hate that name). But the Mainstream Media keeps perpetrating the fiction that our economy is strong. I mean the stock market is soaring to all time highs. They will say whatever it takes to get whomever politician elected, or re-elected, or lose their cush jobs.

    Soon there will be no middle class. Only the really wealthy 1% and a 99% sub-class of poor who are dependent upon the government. Then the latter group will do whatever they are told to do, including ratting out their friends and family members for a crust of bread.

  • desertspeaks

    well this can’t be, remember, resident ovomit keeps telling us that the economy is doing great!

  • Sucking Chest Wound

    These days, everyone knows their rights, but precious few know their responsibities.

  • Brent Holman

    Demand drives jobs, & people just are not spending, because they don’t have any money. The super rich seem to have most of it.
    Retailers are losing market share to online sales as well.

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