Web Exclusive | January 2017
US retail industry in deep trouble
The retail industry in the USA is already taking a major hit this year, with several retailers announcing massive closures and layoffs within the first few week of the year. The closures are leaving behind a glut of empty space that is exacerbating problems for developers and investors in the retail real estate game. Take a look at some of the biggest closures of 2017.
In a message posted on its website, The Limited announced it had closed all of its stores nationwide as of Sunday. That’s 250 locations and roughly 4,000 jobs lost. The women’s apparel chain will continue to operate online, bowing to the growing preference to e-commerce shopping. Increasing struggles in the women’s apparel and mall business led to the closings, and the retailer’s parent Sun Capital told Fortune. In a losing fight for sales, the retailer announced plans last week to unload an additional 108 Sears and 42 Kmart stores by early 2017, in addition to selling its Craftsman tool brand for $900 million. Between the two brands, that’s roughly 2,000 shuttered stores within the past decade.
Following a disappointing holiday season, Macy’s announced it will close 65 stores this year, laying off some 10,000 employees. This is part of a plan Macy’s announced in August to cut 15 per cent of its portfolio, or roughly 100 locations, by 2017 as a result of plummeting sales and a sizable drop in foot traffic.