Wednesday, January 4, 2017

Stores Closing Faster Than They Opened

The wonderful, exciting news keeps coming in, the ex-nihilo credit-fueled dinosaurs continue to die off:
Macy's has already said that it's planning to close 100 stores, or about 15% of its fleet, in 2017Sears is shuttering at least 30 Sears and Kmart stores by April, and additional closures are expected to be announced soon. CVS also said this month that it's planning to shut down 70 locations.Mall stores like Aeropostale, which filed for bankruptcy in May, American Eagle, Chicos, Finish Line, Men's Wearhouse, and The Children's Place are also in the midst of multi-year plans to close stores. Many more announcements like these are expected in the coming months.The start of the year is a popular time to announce store closures. Nearly half of annual store closings announced since 2010 have occurred in the first quarter, CNBC reports.In addition to closing stores, retailers are also looking to shrink their existing locations. "As leases come up, you're going to see a gradual rotation into smaller-footprint stores," Hottovy said.Despite recent closures, the US is still oversaturated with stores.The US has 23.5 square feet of retail space per person, compared with 16.4 square feet in Canada and 11.1 square feet in Australia — the next two countries with the highest retail space per capita, according to a Morningstar report from October."Across retail overall the US has too much space and too many shops," said Neil Saunders, CEO of the retail consulting firm Conlumino. "As shopping patterns have changed, some of those shops are also in the wrong place and are of the wrong size or configuration."
The story makes a delusional point hat these stores are dying due to web competition.  Absolute nonsense.  They are dying in part because they wasted so much resource on web marketing.  And am I ever glad they did, the sooner these stores die off the better for a small business renaissance.  Into the vacuum comes enough demand for specialty that the renaissance will be partly effected.

All of these stores used ex nihilo credit to destroy small businesses, which once provided a livlihood for familes, but then provided exceptional wealt for one family, like thr Walons of WalMart, while turning those small business people in to underpaid workers partially on welfare to subsisence.

The odious ex nihilo credit regime is finally dying put. But you must do your part, and that is start a business.

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