The retail industry is facing a "retail apocalypse" as beloved American department stores are closing in droves.
I've been extensively covering the "retail apocalypse" through my Newsbreak articles. According to my January 4th article:
UBS investing experts have warned of another wave of the "retail apocalypse," citing the loss of 1,800 stores between January 2020 and March 2021, and the declining sales of mid-tier retailers such as Nordstrom and Kohl's.
Furthermore, UBS analysts have predicted that department store sales will "remain under pressure" in the first half of 2023, based on the Commerce Department data and their own analysis.
Stores Being Closed:
Macy's, Kohl's, Nordstrom, JoAnn Fabrics, and Bed Bath & Beyond are among the retailers that may be affected by the crisis.
Macy's has announced plans to close more than 120 stores in the next three years, and has already closed stores in 18 states in December. My 2nd January article, “Mass Closures of Macy's Stores - 125 Stores Closing. What Should You Expect?” is particularly relevant to this.
JoAnn's has had to close eight of its 850 stores, while Sears has 115 closures planned. My January 4th Newsbreak article, “Sears Closure: All 115 Stores Shuttering – Prices Slashed by 40% – Don't Miss Out On This Opportunity!” is particularly relevant to this.
Furthermore, Nordstrom and Kohls may also be forced to close some of their locations. My January 4th Newsbreak article, “Your Local Kohl's and Nordstrom Might Be Closing In 2023” is particularly relevant to this.
Reasons Of Closures:
There are three main reasons for the struggles of these big-box stores:
- Firstly, economic instability in the middle class has led to a decrease in spending at mid-tier retailers.
- Secondly, the rise of e-commerce has contributed to the closure of brick-and-mortar stores.
- Finally, mid-level consumers have turned to discount retailers like Walmart, Aldi, and Lidl to save money, leading to more expensive brands being pushed out.
Conclusion:
The "retail apocalypse" is a significant problem facing American department stores as they struggle to adapt to economic instability, the rise of e-commerce, and competition from discount retailers. It remains to be seen how these brands will survive in the face of these challenges.
What Are Your Thoughts?
Have you noticed any of your favorite stores closing in your area? How do you feel about the closure of brick-and-mortar stores in favor of online shopping? Have you turned to discount retailers to save money, or do you prefer to shop at higher-end stores?
Let me know what you think in the comments below!