If we just keep pouring in more foreign nationals and others legally, while waving through endless waves of illegals, things should eventually improve.
Posted on 05/03/2015 4:02:11 PM PDT by dennisw
Submitted by Michael Snyder via The Economic Collapse blog,
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…
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 families simply do not have the same resources that 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.
closing:
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
(more at source)
Is this “unexpected”?
I never shop at at any of those stores except Staples and Target. I’ve been to Macy’s once and was really disappointed in the low quality of the merchandise. As far as I’m concerned, these places deserve to die off.
Chains in the retail industry have to adjust occasionally.
Remember Ben Franklin 5 & Dimes? Woolco? Woolworth? A JC Penny on the square in every little town? The local Sears?
UPS and USPS are doing well due to internet buying. Here is a good example. Yesterday I drove 12 miles round trip to buy a certain vitamin I wanted right away. It cost me $18. I can internet order it and get it delivered for $13 and free shipping from pureformulas.com////
https://www.pureformulas.com/
So why would I buy this retail in locale? I won’t be in the future. I just wanted this right away plus it is a nice drive out there to this vitamin/health food store that has stuff that Whole Foods does not
The inevitable result of corporate outsourcing, H1B visas and illegal invasions. All drive wages down, narrow the tax base and lower middle class median wage. So for the time being corporations maximize profits and the market irrationally soars until the middle class’ golden neck has been rung.
As any Russian will tell you, Marxism doesn’t work.
Thanks, Obama,for demonstrating that no one ever learns the lessons of history - especially ignorant, doctrinaire Democrats.
This is going on in New York City right now under commie DeBlasio. Read this blog to see it in action http://queenscrap.blogspot.com/ DeBlasio is arranging many motels/hotels for the homeless and developers (his friends) are getting rich off this
These retailers, for the most part, embrace homosexuality and flaunt it with their staff. I can’t stand it and refuse to take my kids there.
I notice forever 21 isn’t closing
Well it is
I think it is the online shopping. I almost never go to a mall anymore.
Excellent recovery, economy doing better than ever!!
/ end fed propaganda.
If the economy was as rosy as they claim, stores wouldn’t be closing.
queers work cheap
10-4
Interesting list.
This recession was not caused by a decrease in the demand for products...but the influx of cheaper goods by 3rd world countries ...and then the exodus of American companies to those 3rd world markets to stay in business and compete with those 3rd world producers..not hampered by onerous EPA and other federal regulations.. not handicapped by our state and federal tax system and labor that wants a living wage ..
So there are no more middle class jobs to return to.. Even many semi skilled jobs that tried to retrain are gone.. there is no where for the uneducated or high school grad to go to be "middle class".. College grads are waiting tables now ...
Sorry but we have outsourced the American dream
ZeroHedge, where the Great Collapse is always just a day away but never comes.
6,000 stores out of how many total? How many are old stores that have been replaced by new ones in nearby locations? Yes, we have excess retail space. We also have MUCH higher internet sales. The market is adjusting, as always.
We’ve also been in a depression since 2008, this is to be expected. We will continue like this for close to 10 more years, get used to it.
But we won’t collapse, though it’s fine to prepare for that contingency. Just remember to prepare for “muddle through” also, which is much more likely.
Meanwhile taxes continue to go up, higher minimum wages and Obamacare squeeze small and medium businesses out, and higher inflation squeezes the money remaining. Gas will eventually go back up to $4/gallon (and likely $6) which will further squeeze people.
If we just keep pouring in more foreign nationals and others legally, while waving through endless waves of illegals, things should eventually improve.
Part economic downturn - prices up, incomes stagnant.
Part tapped out purchasing - owning too much stuff, not enough space.
Part new alternatives - Amazon, enough said.
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