Retail Death Spiral with 5,000+ Store Closures

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It is clear that the American consumer is tapped out, losing interest in big brands and moving towards shopping online. According to Cushman & Wakefield, mall traffic declined by 50% from 2010 to 2013!  Over the last 18 months, the following department store retailers and mall stores have announced (or in the case of Payless Shoes soon to be announced) the closure of over 5,000 stores!  How is that going to help Trump’s employment plan?  Thousands of low-skilled jobs will be lost in this wreck not to mention the shuttering of more retail malls as anchor tenants fail.  Smaller retailers at malls sometimes have co-tenancy clauses that allow them to leave or pay a reduced rent if the mall’s anchor tenant leaves.  It’s a vicious cycle that has started and is only going to benefit Amazon and other online retailers.

Department Stores

  • JCPenney: 138 of 1,000 stores
  • Macy’s: 168 of 730 stores
  • Sears & Kmart: 150 stores
  • Kohl’s: 650 of 1,150 stores
  • Target: 13 stores
  • hhgreg: 88 of 210 stores (Ch. 11)

Mall Stores & Other Retailers

  • Abercrombie & Fitch: 114 of 900 stores
  • Guess: 60 stores
  • Gap/Gap Kids: 40 stores
  • Crocs: 160 of 560 stores
  • The Limited: 250 of 250 stores (Ch. 11)
  • Wet Seal: 500+ stores (Ch. 11)
  • Foot Locker: 151 stores
  • Bebe: 170 stores (shift to online only)
  • Chico: 120 stores
  • Gander Mountain: 60 stores (Ch. 11)
  • Eastern Mountain: 35 stores
  • American Apparel: 110 of 110 remaining stores (closed 120 previously)
  • American Eagle: 150 stores
  • Sports Authority: 140 stores
  • Sports Chalet: 48 stores
  • BCBG: 118 stores of 418 stores (Ch. 11)
  • Radio Shack: 552 stores
  • Payless Shoes: 500 to 1,000 stores (to be announced next week according to Bloomberg)
  • Barnes & Noble: 223 stores
  • Walmart: 154 stores
  • Finish Line: 150 stores
  • Staples: 118 stores
  • Office Depot: 400 stores
  • Tiffany’s: 6 of 313 stores
  • CVS: 70 stores
  • Pier One Imports: 100 stores
  • Family Christian: 240 stores
  • Aeropostale: 200 stores… saved by buyout including GGP and Simon Properties
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This entry was posted in Bankruptcy, Real Estate, Retail mall REITs, Short retail mall REITs by Ron Mahabir. Bookmark the permalink.

About Ron Mahabir

Ron Mahabir has been focused on major macro trends since the mid-1990’s when he began investing in early-stage Internet companies. In 1999, Ron moved to Tokyo to concentrate on the opportunity provided by the Asian Financial Crisis. He established the Japan office for Colony Capital, a Los Angeles based private equity group which has invested over US$39 billion. As President of Colony Japan, Ron oversaw the acquisition, management and disposition of corporate, non-performing loan and property transactions. In 2004, Ron foresaw the makings of a credit bubble and until late 2006 led an investment in and turnaround of the largest mortgage default communications company in North America, The Walz Group. Since acquisition, The Walz Group has experienced significant growth and was listed at #45 on the Inc. 5000 (2008). In anticipation of the largest emerging macro opportunity, the twin crises in resources and the environment, Ron co-founded Asia Cleantech Capital in late 2006. Based in Singapore, Asia Cleantech is focused on investment in clean forms of transportation and power for the Asia Pacific. Ron Mahabir graduated with honors from the Haas School of Business at the University of California, Berkeley.

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