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As More US Retailers Fail, Malls Could Be Next Victim
CNBC ^ | 12/30/2008 | Staff

Posted on 12/30/2008 7:54:41 AM PST by Red in Blue PA

The dismal holiday shopping season may sink some retailers and could take down some U.S. malls struggling with rising vacancies, softening rents and their own large debt loads.

"This is probably going to go down as the worst season in history as far as retail sales," said Victor Calanog, director of research for real estate research firm Reis. "The difficulty of ascertaining what the effect would be at the property level is because we're already heading toward a train wreck."

At the end of the October, the International Council of Shopping Centers (ICSC) forecast that national chains would announce 6,100 store closings in 2008 and 3,100 in the first half of 2009.

(Excerpt) Read more at cnbc.com ...


TOPICS: News/Current Events
KEYWORDS: economy; globaleconomy; malls; retail
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To: dennisw
Sorry to say, but you might want to check up on the Mormon recommendations for having a year's supply of food on hand.

I'm not a Mormon but I do take their advice on this.

http://lds.about.com/od/preparednessfoodstorage/p/foodstorage.htm

61 posted on 12/30/2008 9:00:50 AM PST by MahatmaGandu (Remember, remember, the twenty-sixth of November.)
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To: VeniVidiVici
I spent less this Christmas than any Christmas ever.

If these economic trends continue, I will spend even less next year.

62 posted on 12/30/2008 9:01:41 AM PST by dragnet2
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To: VeniVidiVici

We have two large malls in our area. They were both busy as heck this holiday season, but for the rest of the year, they see relatively few people.

Also, there are fewer and fewer tenants who can afford the outragious rent the malls charge these days. I am amazed at how many store fronts are vacant when I go in there.


63 posted on 12/30/2008 9:01:45 AM PST by reagan_fanatic (Resist the Obamination!)
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To: VeniVidiVici

We have two large malls in our area. They were both busy as heck this holiday season, but for the rest of the year, they see relatively few people.

Also, there are fewer and fewer tenants who can afford the outragious rent the malls charge these days. I am amazed at how many store fronts are vacant when I go in there.


64 posted on 12/30/2008 9:01:47 AM PST by reagan_fanatic (Resist the Obamination!)
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To: reagan_fanatic

Sorry. Must have burped when I clicked the post button.


65 posted on 12/30/2008 9:03:26 AM PST by reagan_fanatic (Resist the Obamination!)
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To: trisham

Malls are declining because _many_ Americans are too fat or lazy to walk from store to store.


66 posted on 12/30/2008 9:03:50 AM PST by gura (R-MO)
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To: gura

The price of gas may have something to do with it as well.


67 posted on 12/30/2008 9:05:57 AM PST by trisham (Zen is not easy. It takes effort to attain nothingness. And then what do you have? Bupkis.)
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To: ejonesie22

Maybe it’s just that people already have all the “toys” they need. I mean how many more TVs and video games do people need to buy>


68 posted on 12/30/2008 9:06:17 AM PST by dfwgator (I hate Illinois Marxists)
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To: dennisw

I kind of like zombie movies. They remind me of when Congress is in session... or of a Democrat National Convention.


69 posted on 12/30/2008 9:09:06 AM PST by WayneS (Respect the 2nd Amendment; Repeal the 16th)
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To: gura

I’m currently developing a large-button TV remote, for those whose fingers are too fat to change the channel.

I predict brisk sales.


70 posted on 12/30/2008 9:10:36 AM PST by WayneS (Respect the 2nd Amendment; Repeal the 16th)
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To: Borges

Not only that, but the mall near me is nothing but a “hang out” for thugs and lowlifes who come to pilfer and eat at the food court. If I have to shop, I like to go to strip centers. Large department stores are becoming a thing of the past.

I hate to go to the mall because I am constantly getting shoved and acosted by people who want me to “sample this great new lotion.”


71 posted on 12/30/2008 9:14:28 AM PST by lone star annie
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To: Red in Blue PA

Service is actually a pretty cool economy, but it does fall prey to negative feedback effects.

So long as service people want to work, you can grow your economy without end simply by having more people work, or work more hours

Other than the friction of taxes, we can just keep doing more and more for each other, exchanging money round and round. Give me a dollar, and I can generate a thousand dollars worth of income for a thousand people.

Every time you make something, you take some of the money out of the flow and embed it in some tangible item, which means it can’t be spent again.

I don’t disagree with you — a manufacturing economy is much more stable, since if you convince people to stop spending money in a service economy, suddenly everybody is sitting in their living rooms wondering what to do.

But since all the goods are being made in foreign countries, and most of the service work is done by americans living in america, at least our services are “buy american”.


72 posted on 12/30/2008 9:17:02 AM PST by CharlesWayneCT
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To: MuttTheHoople

You must work there (Wally World)


73 posted on 12/30/2008 9:22:22 AM PST by dennisw (On the 31st floor a gold plated door won't keep out the Lord's burning rage ---FBB)
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To: gura
Now there's a take I hadn't thought of! :-D And you may very well have a point, as I am struck by how many (invariably morbidly obese) people I see at (eg) wal mart using the motorized carts to shop-such carts are not available at malls AFAIK. At least I haven't seen any in use at the malls in MO and IL that I've visited.

I think it's primarily computer shopping that is killing malls. Malls (and big box stores) are good for browsing, but if you know exactly what you want, comparison shopping online is the way to go IMO.

74 posted on 12/30/2008 9:29:54 AM PST by kaylar
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To: Red in Blue PA

They won’t be missing my business, I already avoid malls like the plague.


75 posted on 12/30/2008 9:35:28 AM PST by Graybeard58
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To: Red in Blue PA
A "new" Outlet Mall opened up in Pottstown, PA about a year ago. Stores have been closing ever since it opened. On most week days you can hardly find anyone there. Just down the road on 422 is a new mammoth shopping center going in ( Wegman's, Talbots, Gucci, etc.) It is only partially built. My prediction is it will never open. It is only 5-8 minutes from the monster King of Prussia Mall which looks like a ghost town on week days.

The problem is that unless builders are "building" they are NOT working, so they keep right on developing. There are so many office building complexes in the Royersford - Pottstown - Valley Forge area that are vacant it is scary.

76 posted on 12/30/2008 9:54:50 AM PST by Doc Savage ("Are you saying Jesus can't hit a curve ball? - Harris to Cerrano - Major League)
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To: Doc Savage

Anything around a Wegman’s is a good chance for success. 3 Wegmen’s up here and they are always busy.


77 posted on 12/30/2008 9:56:52 AM PST by Red in Blue PA (Guns don't kill people; abortion clinics do.)
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To: xjcsa
Geez, what kind of hellhole do you live in?

Seriously. Where do these people live that gangs are a problem in their malls? I do most of my shopping at the Pentagon City Mall- no gangs there.

78 posted on 12/30/2008 10:13:06 AM PST by Citizen Blade ("A Conservative Government is an organized hypocrisy" -Benjamin Disraeli)
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To: dfwgator
True, time for the next Nintendo version to hit.
79 posted on 12/30/2008 10:52:34 AM PST by ejonesie22 (Stupidity has an expiration date 1-20-2013 *(Thanks Nana))
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To: EnglishOnly
It used to be called America. Now, - I think you renamed it for all of us.

Not the America I know.

80 posted on 12/30/2008 11:21:00 AM PST by xjcsa (And these three remain: change, hope and government. But the greatest of these is government.)
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