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)
Shrink-to-fit regime of recirculating debt.
When the factions are done robbing people through both political parties from every level of government, maybe we’ll produce something.
Where are these stores closing? In Democrat/Communist run inner cities? Gee! I wonder why? /s
Yup. That too. The golden goose of the American middle class is having the goose scat squeezed right out. And there are no green shoots in the scat.
Made in china. I worked there 3 years ago and it was designer junk. Oprah could buy a designer bag for 30k or more but her followers would have to have the same name bag, not exclusively hand made but made in china’s sweat shop. what’s with coach or michael what’s his name? Ugly, too, imho.
Sheeple, pure and simple.
Add Pinterest to that. I found a recipe for Annie Sloan chalk paint and very cheaply revamped my parents’ old bedroom furniture for my daughters’ room. They love it! I also got some great ideas for free or cheap raised garden beds. My husband wasn’t too excited about the free, old picnic table I brought home, but it gave us two 4x8 raised beds.
We had a brand new one open up down the street and one year later gone. I walked there. So nice to have a local grocery store. I do read labels so couldn’t get some of the stuff, but I hate walking 10 miles in a box store.
Many of them may be closing because they lose too much to shoplifters and after the riots begin, looters. It’s hard to burn down amazon.com.
People don’t have money to shop, because our government is making us a third world, socialist welfare state where everyone, except politicians and their cronies, will be equally poor.
Yes, ZH is interesting, but they’ve been predicting imminent doom for quite some time now. They are sort of the secular version of those always looking for signs of the end times.
Not too long ago, I wasted close to three hours on a Saturday morning looking for some tools and hardware at a Home Depot, a Lowes and a local hardware store. I eventually found most of what I needed but was able to locate online within minutes the things I couldn't find. And in the process, I realized I overpaid for the things I did find.
Amazon Prime...not a bad deal. For $99 a year, you get most Amazon items delivered to your home in two days with no extra shipping charges. And you get a bunch of on-demand movies and TV shows to watch in the bargain.
If even cantankerous middle-aged men like me would rather buy things online than going to the stores, then yes, I think it's time to say bricks and mortar retail is in real trouble.
It surprised me that 340 “dollar stores” (Dollar Tree/Family Dollar) are closing. I would have thought this sector to be thriving—unless this is a shakeout due to saturation of the market.
I’m also a bit surprised not to see Target stores mentioned on the list.
I’m surprised that things are the way they are because for almost 7 years now the Fed has pumped $85 billion per month into the economy
It appears that all that money has been used to pump up the stock market to give the illusion that things are getting better, when in fact little of the pumped cash has tricked down to the middle class.
Food stamps, SSDI, Section 8 housing, and other freebees are straining the fed and the taxpayers.
Soon like zero hedge I can see the house fall.
With the fed pumping it’s like being on a ventilator. Sure technically you are alive but seriously everyone knows you are dead.
Another factor? A collapse in our birth rate.
also worthy of note is that people are buying stuff online
I agree
I don't even use drive up windows...fast foods, banking, nothing...I hate them!!!
Einstein Bagels doesn’t surprise me at all. They are open about 4 hours a day in the morning for breakfast and then closes the rest of the day and closed on Sunday. Not at all a good business model if you want to be successful. I actually am surprised Honey Baked Ham’s haven’t been closed. They have the worst hours too....lunch and that is it...closed weekends.
Our taxes are too high
Wait until Barney is done with us.....we literally will be getting a stipend every month.
The illegals don’t know that the lifeboat is full already,
Agree about Pinterest! Sounds like you worked a winner! Good for you and your family!
Build a bear is really neat. We had our daughter do one and she loves it. The problem with that is most likely no repeat customers because after you build your bear you most likely want another one as they were satisfied.
Hallmark stores are closing, like you said. KFCs are becoming extinct. Why so many remain open is a question mark to me since delis at local grocery stores sell friend and baked chicken at half the price. The Ross (Dress for Less) stores in this area are tacky with shopping carts that have poles on them so they can tell where the shoppers are located. I shop at our local TJ Maxx, always clean, organized and always find bargains there.
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