"Get Ready for Mass Retail Closings"

[nd5056]

Would be careful if you have any gift cards left.

Get Ready for Mass Retail Closings

Posted Feb 19, 2009 11:58am EST by Tech Ticker

About 220,000 stores may close this year in America, says our guest, retail consultant Howard Davidowitz of Davidowitz & Associates.

As more Americans save and spend less, it's clear there's too much retail space. Just visit Web site deadmalls.com and track retail's growing body count. And luxury retailers? They're on "life support," Davidowitz says.

Among the brandname stores Davidowitz says are in trouble:


Nordstrom

Neiman Marcus

Tiffany

Jeweler Zale Corp.

Saks

J.C. Penney

Sears

 

[andrews_dad]

Other big businesses that Yahoo recently put out as ones not likely to make it through 2009 included Blockbuster, Krispy Kreme, Station Casinos, Rite Aid, Rain Forest Cafe, Dollar Rent A Car, Sirrius, and mant other big names.

 

[LaurenLC]

I have been an executive for a large retailer for 9 years now, so I have to say this... I am sure that the person who posted this had no rude intentions, but it is incredibly hurtful when people who work retail hear people talking about getting the most out of their gift cards...... How do you think the people that work in these stores feel? Gee… I hope people get to use their $25 gift card before I lose my job!

 

[harleyquinn]

That's like my entire mall (besides Tiffany)...

 

[dawnbu40]

Postings like this do no one any good. At Christmas all the internet buzz about which stores wouldnt make it past Christmas hurt businesses like PacSun and Eddie Bauer. Creating fear among consumers hurts everyone.

 

[here757]

That's like my entire mall (besides Tiffany)...

wait!!u still have a mall?? lol ours keep disappearing. 2 of them in hampton va closed

 

[McDISer]

Sears
JCPenneys?
I can't believe these two.

 

[luvdzne]

I'm sure retailers will be looking to close their doors on their stores that are not doing so hot, but I have a hard time believing that their will be a "Mass Retail Closing".

 

[sammi6]

Sears is a definite, they are trying there best, but it was just on tv the other night. Sears believes that they are going to have to file Chapter 11 soon.

 

[crisi]

Sears has been on the ropes for a long time. Penny's has been farther away.

A lot of these retailers (Tiffany's, Nordstrom) are part of the grow too big for your market problem. Tiffany's would be doing just fine if they were still a destination jeweler for the really wealthy, but why in the world should there be a Tiffany's in Minnesota? Others are heavily leveraged due to expansion (RiteAid, Krispy Kreme) and now have reduced cash flow to continue to pay the debt they took on.

 

[bigdisneygroup]

Postings like this do no one any good. At Christmas all the internet buzz about which stores wouldnt make it past Christmas hurt businesses like PacSun and Eddie Bauer. Creating fear among consumers hurts everyone.

My thoughts exactly.

 

[chicagoshannon]

Sears
JCPenneys?
I can't believe these two.

I can believe Sears but not JCPenney. Sears has been in trouble a few times.

 

[luvdzne]

Sears is a definite, they are trying there best, but it was just on tv the other night. Sears believes that they are going to have to file Chapter 11 soon.

Just because it's on TV it must be so! If they said on the news the sky was falling everyone would be outside watching for it to happen.

 

[Disney1976]

Well, funny this would be posted. I've been working on a closing for a client and had been dealing with an appraiser with 35 years experience. While making conversation about the economy, he mentioned that I should be prepared to see an "implosion in commercial real estate that will make the sub-prime mortgage mess look like a walk in the park." He said the next 90 days will be very bad, with some areas worse than others. Here in Central FL, I know of one mall where 30 of the 90 stores are now closed -and another not far behind (although the Orlando area is still overvalued and the market is overinflated anyway) He said landlords will be scrambling to find commercial tenants to find space, which is very bad news indeed.

Hoping it's not going to be as bad as everyone is predicting.

 

[wall*e2008]

Well, funny this would be posted. I've been working on a closing for a client and had been dealing with an appraiser with 35 years experience. While making conversation about the economy, he mentioned that I should be prepared to see an "implosion in commercial real estate that will make the sub-prime mortgage mess look like a walk in the park." He said the next 90 days will be very bad, with some areas worse than others. Here in Central FL, I know of one mall where 30 of the 90 stores are now closed -and another not far behind (although the Orlando area is still overvalued and the market is overinflated anyway) He said landlords will be scrambling to find commercial tenants to find space, which is very bad news indeed.

Hoping it's not going to be as bad as everyone is predicting.

I heard that in a few news articles recently.

Sears was in BIG trouble and that is how they ended up merged with KMart (who also was in trouble but back on it's feet before the merge with Sears).

I like Penney's but don't shop there as much as I use to.

 

[sallysue66]

Other big businesses that Yahoo recently put out as ones not likely to make it through 2009 included Blockbuster, Krispy Kreme, Station Casinos, Rite Aid, Rain Forest Cafe, Dollar Rent A Car, Sirrius, and mant other big names.

KRISPY KREME??? NO!!! Say it ain't so!!!!!!!!!!

 

[angelmav]

Honestly, this is why a stimulous package that would have put money in peoples hands would have saved more jobs than the trillion bucks we spent to create them.

I am so glad I am not working in retail right now, alot of friends that work on commission are losing their jobs or just not making it period, and they are not being replaced.

 

[CarolA]

Sears
JCPenneys?
I can't believe these two.

This is one of the "SCARE THE CONSUMER" articles. And the folks on here will RUN WITH IT!

Yes, Pennys and Sears will close UNDERPERFORMING stores as will anyone else.

That does not mean the chain is going out of business.

Chapter 11 does not mean they are going out of business. See Delta. I just got off a flight with them and they were in Chap 11 just a few years ago.

So perhaps we could hold off on the panic? (NAH, it's the DIS LOL!)

 

[CarolA]

Would be careful if you have any gift cards left.

Please post the link to this article!

 

[JandJ]

KRISPY KREME??? NO!!! Say it ain't so!!!!!!!!!!

DH will cry if it is!

I don't put a lot of stock into these lists, one came out at Christmas that wasn't accurate, and I don't think there is any need to panic. But, I believe a lot more stores will be closing this year. I haven't been shopping in a long time and I used to go to the mall a few times a month, get a top or skirt on sale at Ann Taylor or j.jill, cards at Hallmark, maybe get lunch or a snack out, but I don't anymore. I'm honestly scared to spend money on things we don't absolutely need. The more people feel that way about shopping, the more stores will be forced close.