Stores Are Closing at a Record Pace – Video inside

I thought this was worth sharing so I decided to write a post. I strongly recommend you read the full article and watch the video. I feel this is important news and it should be considered a strong indicator of where our economy may be heading.

Some things that really jumped at me are:

Payless Inc. shoe chain filed for bankruptcy and announced plans to shutter hundreds of locations [400 stores].

Ralph Lauren Corp. … said it will close its flagship Fifth Avenue Polo store.

The teen-apparel retailer Rue21 Inc. could be the next casualty … which has about 1,000 stores…[and]…is preparing to file for bankruptcy as soon as this month.

More than 10 percent of U.S. retail space, or nearly 1 billion square feet, may need to be closed, converted to other uses or renegotiated for lower rent in coming years.

According to Labor Department figures releasedon Friday, retailers cut around 30,000 positions in March… about the same total as in February and marked the worst two-month showing since 2009.

Urban Outfitters Chief Executive Officer Richard Hayne said that basically a bubble has been created and this trend of closing stores will continue…”Doors shuttering and rents retreating. This trend will continue for the foreseeable future and may even accelerate.

Year-to-date store closings are already outpacing those of 2008

HHGregg Inc., Gordmans Stores Inc. and Gander Mountain Co. all entered bankruptcy this year. RadioShack, meanwhile, filed for Chapter 11 for the second time in two years.

Other companies are plowing ahead with store closures outside of bankruptcy court. Sears Holdings Corp., Macy’s Inc. and J.C. Penney Co. are shutting hundreds of locations combined.

Kenneth Cole Productions said in November that it would close almost all of its locations. Bebe Stores Inc., a women’s apparel chain, is planning to take a similar step.

The good news is that Customers prefer physical stores 75 percent of the time, according to Cowen research”.

Here’s the video!

Source: Stores Are Closing at a Record Pace as Amazon Chews Up Retailers – Bloomberg