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)
Notable ones around here leaving empty store fronts behind: Macy’s, J.C. Penney, Sears, Radio Shack, Office Depot, Barnes & Noble, Chicos, Bass Shoes, Borders, Hallmark Stores, a LOT of restaurants. Most McDonalds also look like they have one foot in the grave as well.
The one store expanding is Ross Dress for Less, which I call the Ross Ghetto Store.
The Prepper market is going great guns. Hmmmm. I wonder what that may mean.
Yep, one here!
Eight years too late.
also worthy of note is that people are buying stuff online
**********
Very true. I keep the recycle container filled with shipping boxes.
Paper mfgrs should be booming.
That is the wife’s complaint makes her physically ill.
TG&Y? Toys, guns and yo-yos :)
Notice some businesses are those which cater to the wealthy. So if the wealthy are punished with higher taxes the hurt trickles down to the non-wealthy.
I shop at Target a couple of times a week.
The other day, I wanted to buy a WaterPik. Actually, I decided I’d buy two.
When I went on line to see if Target had them, I found out they did... but the web page said “item not available in stores.”
So I made the purchase on line. About $80, including sales tax. Free shipping, and I got the 5% Target card discount.
It’s hard to understand. They’re undercutting their own stores with internet sales.
Maybe I’ve been living out here in the country too long. I’ve never heard of half these stores.
Build A Bear?
Deb Shops?
Just Baked?
Wet Seal? (most seals are :)
Noticeably missing: Wal*Mart, Hobby Lobby, Lowes and Home Depot.
Too expensive, better deals online, and personally, I love consignment boutique/home furnishing, and yard sale shopping. In the last few years, I’m still amazed at the deals and the quality of items I’ve been able to purchase at far fewer prices than buying/charging at retail stores. Many Americans are catching on!
You make a good point. I don't know anyone who doesn't think there's a good chance that there could be a complete collapse of things. People are putting cash aside. They're buying what they need if they have to go a few months with nothing being available in a crisis. There doing major things around the house that need doing. A huge chunk of their income goes to technology.
Doesn't leave much cash for clothes, house furnishings, jewelry, and the other stuff these stores sell.
eCommerce. Next question.
Thanks for the cool article. Yes, Zero Hedge is cynical and lacks hope in the Lord. Number closing:
223 Barnes and Noble. I went there in the 1990’s.
70 Coco’s. Bummer. I went there once a week with family.
50 Fresh and Easy. They recently built too many too quickly.
14 Friendly’s. I hope my cousin who works there will find work.
50 Guess. Please close and get rid of lame advertising and sweat shops.
40 JC Penny. Sad.
400 Office Depot. Good. That place is repulsive.
63 Pep boys. Sad.
1,784 Radio Shack. Wow.
55 Staples. They always seem empty.
I give what extra cash to my adult children to help with the grandchildren.
Smart shoppers go to resale shops or outlet stores for much cheaper clothing and household items.
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