Major U.S. Retailers Are Closing More Than 6,000 Stores

Tyler Durden's picture

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…

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

50 Express (through 2015)

31 Frederick’s of Hollywood

50 Fresh & Easy Grocey Stores

14 Friendly’s

65 Future Shop (Best Buy Canada)

54 Golf Galaxy (by 2016)

50 Guess (through 2015)

26 Gymboree

40 JCPenney

127 Jones New York Outlet

10 Just Baked

28 Kate Spade Saturday & Jack Spade

14 Macy’s

400 Office Depot/Office Max (by 2016)

63 Pep Boys (“in the coming years”)

100 Pier One (by 2017)

20 Pick ’n Save (by 2017)

1,784 Radio Shack

13 Ruby Tuesday

77 Sears

10 SpartanNash Grocery Stores

55 Staples (2015)

133 Target, Canada (bankruptcy)

31 Tiger Direct

200 Walgreens (by 2017)

10 West Marine

338 Wet Seal

80 Wolverine World Wide (2015 – Stride Rite & Keds)

So why is this happening?

Without a doubt, Internet retailing is taking a huge toll on brick and mortar stores, and this is a trend that is not going to end any time soon.

But as Thad Beversdorf has pointed out, we have also seen a stunning decline in true discretionary consumer spending over the past six months…

What we find is that over the past 6 months we had a tremendous drop in true discretionary consumer spending. Within the overall downtrend we do see a bit of a rally in February but quite ominously that rally failed and the bottom absolutely fell out. Again the importance is it confirms the fundamental theory that consumer spending is showing the initial signs of a severe pull back. A worrying signal to be certain as we would expect this pull back to begin impacting other areas of consumer spending. The reason is that American consumers typically do not voluntarily pull back like that on spending but do so because they have run out of credit. And if credit is running thin it will surely be felt in all spending.

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.  This is especially going to be true in poor and lower middle class neighborhoods.  Especially after what we just witnessed in Baltimore, many retailers are not going to hesitate to shut down underperforming locations in impoverished areas.

And remember, the next major economic crisis has not even arrived yet.  Once it does, the business environment in this country is going to change dramatically, and a few years from now America is going to look far different than it does right now.

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Creepy A. Cracker's picture

WalMart protestors and Al Sharpton are on the bus headed to all of the locations now...

Publicus's picture

Nah, it's just a return to small boutique retailers.

kaiserhoff's picture

They are good citizens...,

  helping the Greenies conserve energy.

I never liked malls anyway, but the whole commercial real estate thang is in deep weeds.

Skateboarder's picture

I needed a micro-B USB cable with a female socket. Fry's didn't have it. Radioshack saved the day, and I was able to get all my work done. The cable was priced at $19.99, and was marked down to $14.99. The entire store was being liquidated, so everything was 50-60% off. Damn cable ended up costing $5. I got four of 'em. You never know when you fuck up tearing open a USB cable. Someday soon, engineers won't be able to make a Radioshack run to get some parts for prototyping, etc. I guess we'll sick with Digikey, Mouser, and pals...

WayBehind's picture

Its a shame the Build-A-Bear stores are closing. Not sure how we will survive without those ...

and they forgot to put the ChinaMart stores on the list .... perhaps the plumbing issue is just temporary haha

espirit's picture

HaHa, the jokes on me.

I was expecting Snyder to list all 6000...

Ying-Yang's picture

6000 stores closing forever!

Part of me thinks it is a way to consolidate the

Zombie target rich assets. They can pick and choose what areas should be addressed first.

I think I just scared myself but on the otherhand I self medicate.

MonetaryApostate's picture

Look peeps, we are being shifted into the digital age, where everything will be done online, and that's because the wealthy are consolidating their wealth at this time.  They will make more while doing less because the serfs will be forced to supply for each other or wither and die, so work hard for what little peanuts they offer or die, more or less...  (Let the Hunger Games Begin, no they weren't joking about that?)   

(Just listen to their arrogance... ) https://youtu.be/cCjGNOnLrAU

 

I've outlined well what's coming, I have zero doubt.

http://galeinnes.blogspot.com/

847328_3527's picture

And yet strip malls -- donut shop, nail salon, UPS packing store and a Starbucks --  are proliferating like a cancer, destroying every bucolic setting real estate developers can find.

Manthong's picture

"Someday soon, engineers won't be able to make a Radioshack run to get some parts for prototyping, etc."

I have watched just about all of my "go to" places go away.

..maybe I should consider a move to China and a job as a night watchman at Foxconn.

VinceFostersGhost's picture

 

 

We're just 5 days away from the total transformation of the United States - Barack Obama, Prophet

Joe Davola's picture

31 Frederick’s of Hollywood

Say it ain't so!

Charles Wilson's picture

"And yet strip malls -- donut shop, nail salon, UPS packing store and a Starbucks --  are proliferating like a cancer, destroying every bucolic setting real estate developers can find."

 

Thank Congress for that. A little Tax Dodge was placed into the code years ago that guaranteed Strip Malls everywhere.

 

CW

Handful of Dust's picture

Merikan Middle Class private sector [yes, the sector that consumes the most namely spends the most] is a Broke Donkey.

All the pennies are needed to pay for the Barry/Pelosi/Reed Obamacare Health Insurance which insures you but guarantees half your doctors don't accept it.

Oh yeah; then there's the sky rocketing property taxes, HOA, home insurance, and several kids to feed and furnish iCrap devices to so they can twitter all day and "like" each other on FB while they follow every move of Kim Kartrashian and Jason Beeper.

 

Retail businesses [and the Real GDP] is in dire straits.

pelican's picture

No manifacturing jobs, no retail jobs and outsourced all the high tech jobs.

Did anyone in Washington realize that no industry equals no taxbase?

University jobs will be next. 

It is time for a huge war to think the herd I am afraid.

fleur de lis's picture

The whole university loan racket needs to be stopped, and there needs to be an accouting of assets. They keep expanding while tuitions are soaring, offering stupid courses with no employment prospects, and forcing students to take courses they neither want nor need just to keep departments going. After all that graduates leave with crushing debt, and if they find work in their chosen fields they are paid a lousy salary. Often they end up in something completely different just to pay off obscene heaps of money for nothing.

If a particular area yields little or no employment either it should be closed or the students should be warned of same. If not that then schools should be forced to have some skin in the game and refund the tuition for selling a crummy product. Once they have to pay for anything they will shape up.

Manthong's picture

So the hangars on the Nissan SUV’s exhaust have rusted away.

Not happy about that.

Can’t get stainless strap at retail..

Not only that, but I could not find a handful of iddy biddy caps to fix the Samsung display anywhere near here.. I have to order them.

We are so f’d ..

..at least I was able to get the .035 wire for the welder at Homer.

wee-weed up's picture

 

 

What did you expect?

This is Hope & Change... the Obozo Economy!

It does NOT work, plain and simple!

Manthong's picture

It's late at night .. I need to rant..

Old but perfectly good DVI, New HDMI, Mini USB.. Micro USB..  Mini HDMI,,  adapter here..  adapter there..   FU Nikon..FU bastards that do not standardize cables..

And for you kids.. I keep my wireless footprint really, really small and way high encrypted.

you cannot war drive me.

this is how you do it if you are serious..

http://www.ittcannon.com/Core/medialibrary/ITTCannon/website/Literature/...

 

that was a fun self-indulgement..   :-)


 

DutchR's picture

Like the Contact Plating, it's a way to stack i guess ;)

cnmcdee's picture

It is a lot worse than that. Sorry.

Zigs's picture

One more reality the FED has distorted.

fascismlover's picture

They are either mall stores or stores that should have not coasted this long.  It turns out that old people walking the mall at 6am (the major foot traffic) does not ensure revenues for stores that are not open at 6am.

inhibi's picture

Nah, with price matching I usually find everything to be the same except when it comes to food/home appliances, where its much cheaper to buy at the store.

Oh regional Indian's picture

Zinggggg....goes the Davola dart.

But hey, my pal at MacKinsey and co has been "solving" retail for US retails giant at $6,000 an hour.

I'm sure they have a plan.

Two possibilities entered my mind actually....

1) No money and this is obviously the more plausible

2) No space for more shit. The Rectum of the United is full to bursting and as a collective, the nation is totally constipated. That is literally true too, highest laxative consumption globally. GO USSA! 

On ocassion, the American collective exhibits Irritable Asshole Syndrome and goes and literally and figuratively "Bombs Away"....Bomb's Away episodes leave the world littered with Irritable American Assholes.

Irritable American Assholes are not welcome back to the steaming shit-pile called home.

There is near term danger of the whole world becoming a pile of steaming wookie-doo.

Because Irritable American Assholes always "go-go-go for it" Like Donkey Kong.

That my friends is the tale of the IAA...

Further  thoughts...sequence 13

https://youtu.be/gTot6Wcz3-g

 

Skateboarder's picture

Always ejoy your breakdown of wor(l)ds, ORI - was enlighted to see Sequence 13. :-)

Those who don't fully appreciate the power of sound (not talking equations and academia) cannot fully grasp that their language, i.e. means of expression, is being robbed from them. Light is given premier importance in today's wolrd, but it is no accident that all the oral traditions of ages past transfered knowledge by sound. Thankfully, a glance into one's eyes can tell universes worth of stories on its own. Sound and sight - gifts from the cosmos... cherish or perish seems to be the theme.

Oh regional Indian's picture

Well said and concur all around my friend...

ThanksChump's picture

"Sequence 13": A video of the metaphorical beating of horse figurines carved from the bone of a horse that was beaten to death by a drunken, illiterate Brit mob centuries ago.

 

"Sequence 14" was much better. Avimukta did a better job of explaining the disturbing connection between the illuminati and Lawn Darts.

Miffed Microbiologist's picture

Fredericks and Victoria Secret are garbage. None of their stuff lasts. Any girl with any taste goes to Trashy Lingerie in L.A. or Kaprezza European Lingerie of San Diego. Does take a year to save up for one set but so worth it. Quality does come with a price which Americans don't seem to get.

Miffed;-)

QQQBall's picture

Trashy Lingerie has great qualtiy  and good selection - seriously the way to run a business.

stormsailor's picture

we need pictures to judge the quality

Miffed Microbiologist's picture

That sounds reasonable. These things are are so beautiful, shame to keep them hidden. I should send you an email to judge. ;-)

Miffed;-)

CuttingEdge's picture

And there's me thinking Jade Helm started mid-July...

BoredRoom's picture
BoredRoom (not verified) Manthong May 3, 2015 7:29 AM

Why so many raycess articles here questioning Dear Leader's glorious economy?

Manthong's picture

hmm..  Which brown peace prize winner 

has lead efforts to kill more brown people than any other?

clue.. drones are the the tip of the spear-chucker..

oh, I am so sorry for that sarc..

it's the face of a 7 iron that is the tip of the spear.

cossack55's picture

No gun/ammo shops. Hmmmmm.........

Manthong's picture

golf course..

waste of a perfectly good rifle range..

19th hole could make a great bunker / bar..

..just kidding.. I have lived right next to golf courses most of my life

and I love to shoot golfs..

it's just them damn little golf eggs that are hard to crack.       

 

 

 

QQQBall's picture

You could close every outlet for those companies and I would not even notice.

Arnold's picture

Day labor hanging out

in front of Ambercrombie, instead of Homer.

Manthong's picture

go way back to a Beverly Hillbillies episode for that joke..

 

 

 

Manthong's picture

Omigosh..

Those of you that have a clue know that the golf business is declining with the economy..

How about we crowd fund a new fun activity that is like a warm weather combination of the Olympic Biathlon and golfing?

One competitor attempts to keep his golf ball from being accurately targeted and blown away by the other competitor.

This could invigorate the industry.

 

Manthong's picture

Ok ok.. so after the tee off, the (competitor 1) hitter takes whatever high velocity cart or vehicle (a high power motorcycle would be really cool) to reach his ball prior to the time that the ensconced  (competitor 2) can target and blow the ball away..


The videos of the dances would be worth millions.

 

But we need to keep Competitor 2’s golf equipment semi-auto and no larger than .50 BMG.


 

gee.. if the kids only understood the fun of trying to hit a randomly fallen little 2 inch white object in the grass at 570 yards.  :-)

Arnold's picture

We're getting a new Frisbee golf course.

For the newbies, Man.

Dave Thomas's picture

That's new suburbia. Every 300 yards there is a nail salon, cell phone store, tattoo parlor, smoke shop, donut shop, pawn shop, auto mechanic, pay day loan, gun store, hair salon, washateria. This repeats as far as the eye can see.

Think about the populace that demands these stores.

thamnosma's picture

We've blighted the landscape as far as the eye can see, that's for sure.   However, here in Kalifunia, we don't have many gun stores.