U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
Old 03-11-2014, 01:04 PM
Location: Central Maine
2,868 posts, read 2,844,950 times
Reputation: 3976


This is an excerpt. The article is pretty good.

#1 As you read this article, approximately a billion square feet of retail space is sitting vacant in the United States.
#2 Last week, Radio Shack announced that it was going to close more than a thousand stores.
#3 Last week, Staples announced that it was going to close 225 stores.
#4 Same-store sales at Office Depot have declined for 13 quarters in a row.
#5 J.C. Penney has been dying for years, and it recently announced plans to close 33 more stores.
#6 J.C. Penney lost 586 million dollars during the second quarter of 2013 alone.
#7 Sears has closed about 300 stores since 2010, and CNN is reporting that Sears is "expected to shutter another 500 Sears and Kmart locations soon".
#8 Overall, sales numbers have declined at Sears for 27 quarters in a row.
#9 Target has announced that it is going to eliminate 475 jobs and not fill 700 positions that are currently empty.
#10 It is being projected that Aéropostale will close about 175 stores over the next couple of years.
#11 Macy's has announced that it is going to be closing five stores and eliminating 2,500 jobs.
#12 The Children’s Place has announced that it will be closing down 125 of its "weakest" stores by 2016.
#13 Best Buy recently shut down about 50 stores up in Canada.
#14 Video rental giant Blockbuster has completely shut down all of their stores.
#15 It is being projected that sales at U.S. supermarkets will decline by 1.7 percent this year even as the overall population continues to grow.
#16 McDonald's has reported that sales at established U.S. locations were down 3.3 percent in January.
#17 A home appliance chain known as "American TV" in the Midwest is going to be shutting down all 11 stores.
#18 Even Wal-Mart is struggling right now. Just check out what one very prominent Wal-Mart executive recently admitted...
David Cheesewright, CEO of Walmart International was speaking at the same presentation, and he pointed out that Walmart would try to protect its market share in the US – where the company had just issued an earnings warning. But most of the growth would have to come from its units outside the US. I mean, via these share buybacks?
Alas, outside the US too, economies were limping along at best, and consumers were struggling and the operating environment was tough. "We're seeing economies under stress pretty much everywhere we operate," Cheesewright admitted.
#19 In a recent CNBC article entitled "Time to close Wal-Mart stores? Analysts think so", it was recommended that Wal-Mart should close approximately 100 "underperforming" supercenters in rural locations across America.
#20 Retail consultant Howard Davidowitz is projecting that up to half of all shopping malls in America may shut down within the next 15 to 20 years...
Within 15 to 20 years, retail consultant Howard Davidowitz expects as many as half of America's shopping malls to fail. He predicts that only upscale shopping centers with anchors like Saks Fifth Avenue and Neiman Marcus will survive.
Reply With Quote Quick reply to this message

Old 03-11-2014, 02:24 PM
Location: Warwick, RI
2,546 posts, read 3,858,642 times
Reputation: 4038
Retail consultant Howard Davidowitz is projecting that up to half of all shopping malls in America may shut down within the next 15 to 20 years...
Good start, but even with half closing, we'll still have twice as many as we need.
Reply With Quote Quick reply to this message
Old 03-11-2014, 02:30 PM
Location: between three Great Lakes.
1,631 posts, read 1,785,870 times
Reputation: 5389
I can't speak for the rest of the USA, but certainly Michigan has been over-stored for years. So many cheap chains, so little variety of merchandise....
Reply With Quote Quick reply to this message
Old 03-11-2014, 03:06 PM
Location: Chicago
5,412 posts, read 8,283,294 times
Reputation: 6347
Would be nice if the demise of some of these big box stores spurs a rise in local retail, which helps communities. I think with the growing wealth of the upper percentile, small local boutiques should do better, which is what I've seen in my community. Higher end chains, like Saks, NM, should also continue to do well.
Reply With Quote Quick reply to this message
Old 03-11-2014, 09:12 PM
996 posts, read 2,263,052 times
Reputation: 600
A link to the actual article would have been great
Reply With Quote Quick reply to this message
Old 03-12-2014, 02:28 PM
2,032 posts, read 1,379,866 times
Reputation: 2562
Mostly a one two punch, Online sales and a never ending weak economy.
Reply With Quote Quick reply to this message
Old 03-12-2014, 02:31 PM
Location: East of Seattle since 1992, originally from SF Bay Area
28,413 posts, read 50,625,851 times
Reputation: 28663
Meanwhile, Amazon continues to construct new buildings and hire thousands more employees. Walmart is going heavily into online sales and the result may be to close low performing stores, while those in less affluent areas will remain open and busy. While retail people are being laid off, warehouse and tech workers will be added, at higher pay. I can't understand why Walmart put in two stores in an affluent city like Bellevue WA, maybe two miles apart. You can go any time of the day to either and find just 1-2 checkstands open and no lines.

Amazon to hire 7,000 in warehouses, customer service | Business & Technology | The Seattle Times
Amazon Hiring Now: Creates 2,500 Full-Time Jobs with Comprehensive Benefits Across its U.S. Fulfillment Network - MarketWatch

Wal-Mart Vs. Amazon: Which Should You Buy? - NASDAQ.com
Reply With Quote Quick reply to this message
Old 03-12-2014, 05:19 PM
Location: Carmichael, CA
1,937 posts, read 2,731,226 times
Reputation: 2923
You can open all the Mom and Pop stores you want, but if they charge more than WalMart, and people just don't have the extra money, how will that help the economy?

There's several things that I buy now at WalMart that I just simply went without before due to the price at the local store.
Reply With Quote Quick reply to this message
Old 03-13-2014, 12:08 PM
Location: Chicago
5,412 posts, read 8,283,294 times
Reputation: 6347
Originally Posted by 944Marine View Post
Local retail helps communities, but big box stores don't? If Mom and Pop have 5 employees and Wal Mart moves to provide 150 people with jobs, is that not improving the economy? What is the dividing line for when a big box store (Wal-Mart) becomes OK in your eyes? i.e. Saks and NM? Other than their clientele?
No, I didn't say big box chain stores can not help communities, I said local businesses help local communities more than natl. chain stores.... I thought this was a pretty well-known/well-documented concept, e.g. why Walmart new constructions are picketed by communities. Plenty of research out there on this.

Key Studies on Big-Box Retail & Independent Business | Institute for Local Self-Reliance
Economic Impact of Local Businesses vs. Chains Studies have found that locally owned stores generate much greater benefits for the local economy than national chains do.
Retail Employment Studies conclude that the arrival of a big-box store decreases the number of retail jobs in a region.
Wages & Benefits Studies have found that big-box retailers, particularly Walmart, are depressing wages and benefits for retail employees, and that median incomes have risen faster in places with more small businesses compared to those dominated by big businesses.
Existing Businesses These studies look at how the arrival of a large chain impacts local retailers and other nearby businesses.
Poverty Rates Counties that have gained Walmart stores have fared worse in terms of family poverty rates, according to this study.
Social and Civic Well-Being These studies find that a community’s level of social capital and well-being is positively related to the share of its local economy held by local businesses, while Walmart’s presence undermines social capital and civic participation.
City Costs These studies find that the cost of providing big-box stores with city services — road maintenance, police, fire, etc. — can exceed the local tax revenue generated by these stores, resulting in a net loss to taxpayers.
State Costs These reports examine the high cost to state and federal taxpayers of providing public assistance, such as Medicaid and food stamps, to the millions of chain retail and restaurant employees who do not earn enough to make ends meet.
Subsidies These studies document the massive public subsidies that have financed the expansion of big-box stores and how this subsidized development has failed to produce real economic benefits for communities.
Consumers & Prices These studies find that chains are not always a bargain.
Traffic This study examines the traffic impact of supercenters.
Charitable Contributions Small businesses donate about twice as much per employee to charitable organizations as large businesses, according to this study.

Harms of Big Box Retail | Good Jobs First

Local Business Builds Communities Better Than Big Box Stores

Reply With Quote Quick reply to this message
Old 03-13-2014, 12:30 PM
1,380 posts, read 1,777,139 times
Reputation: 2364
As another poster mentioned, a lot of this is the result of online sales. And a lot of redundent infrastructure exists because so many neighborhoods have taken a turn for the worse. Big box stores will close a locatiom and then open another a mile or two down the road to be in the "better" area. One Target here closed (the old building became Big Daddy's Pawn Shop before being closed by the city for knowingly buying stolen merchandise) and moved a couple of miles down the same street only to announce last month that they are closing also. I anticipate a third store even further out on Winchester Rd soon Middle class women, who are the bread and butter for these big stores, will not shop in a marginal area, and these neighborhoods are full of obsolete retail space. Housing is about a generation behind. Marginal areas still have mostly occupied houses. Working class people have to live somewhere. The old working class areas are often now full fledged slums with retailers gone for decades, and fewer residents and schools every year.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.

Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top