Store Closings to Top 5,000 in 2012
While most retailers have already closed their worst performing stores and made their operations as lean as possible over the past few years, the uncertain economic climate might lead to a substantial number of store closures in the first quarter of 2012, according to an article on Retailtrafficmag.com.
In total, Michael S. Wiener, president and CEO of Excess Space Retail Services Inc., estimates more than 5,000 stores will close in 2012, and that’s not counting closings related to bankruptcies and liquidations.
So far in 2011, the retail industry experienced fewer store closings than during the same period in 2010. International Council of Shopping Centers (ICSC) numbers show there have been 3,196 store closing announcements in the first three quarters of the year. Christopher & Banks, Syms and Filene's Basement storefronts are some of the most recent casualties reported. Still, this figure is less than half the 4,889 store closings announced in the first three quarters of 2010. For the whole year, U.S. retailers closed 5,572 stores.
The figure for the whole year 2012 might be lower by up to 30 percent thanks to cost-cutting measures adopted by U.S. retail chains to stay afloat, says Matthew Bordwin, co-president of GA Keen Realty Advisors, a division of Great American Group. Nevertheless, he predicts that conditions in the sector will remain perilous until consumers see significant job growth and feel more confidence in their future.
The article also notes that the majority of store closings in 2011 have been in the books, apparel and footwear verticals. Going forward, the electronics sector may be in trouble, as well as small to mid-tier department stores.
“In 2012, I think you are going to see more small specialty stores closing, you will continue to see restaurant chains struggling and see old c-store formats starting to vacate as well,” said Andy Graiser, co-president of DJM Realty, in the article. “From the big-box spaces, we are still expecting to see small to mid-priced department stores continue to struggle. My reasoning is that it comes down to the economy. Middle America shows no signs of recovery and seems to be more concerned with spending [its] disposable income on mortgage and car payments and putting food on the table.”
Below is the number of store closings per year for the past 10 years, according to ICSC:
Number of Store Closings
2001: 7,041
2002: 5,950
2003: 4,973
2004: 6,303
2005: 4,269
2006: 4,730
2007: 4,603
2008: 6,913
2009: 4,811
2010: 5,572
2011: 3,196
To find ot more about recent store closing, read these articles from RIS News:
Christopher & Banks Closes 100 Stores, Cuts Workforce
Syms and Filene's File for Chapter 11 Bankruptcy Protection
In total, Michael S. Wiener, president and CEO of Excess Space Retail Services Inc., estimates more than 5,000 stores will close in 2012, and that’s not counting closings related to bankruptcies and liquidations.
So far in 2011, the retail industry experienced fewer store closings than during the same period in 2010. International Council of Shopping Centers (ICSC) numbers show there have been 3,196 store closing announcements in the first three quarters of the year. Christopher & Banks, Syms and Filene's Basement storefronts are some of the most recent casualties reported. Still, this figure is less than half the 4,889 store closings announced in the first three quarters of 2010. For the whole year, U.S. retailers closed 5,572 stores.
The figure for the whole year 2012 might be lower by up to 30 percent thanks to cost-cutting measures adopted by U.S. retail chains to stay afloat, says Matthew Bordwin, co-president of GA Keen Realty Advisors, a division of Great American Group. Nevertheless, he predicts that conditions in the sector will remain perilous until consumers see significant job growth and feel more confidence in their future.
The article also notes that the majority of store closings in 2011 have been in the books, apparel and footwear verticals. Going forward, the electronics sector may be in trouble, as well as small to mid-tier department stores.
“In 2012, I think you are going to see more small specialty stores closing, you will continue to see restaurant chains struggling and see old c-store formats starting to vacate as well,” said Andy Graiser, co-president of DJM Realty, in the article. “From the big-box spaces, we are still expecting to see small to mid-priced department stores continue to struggle. My reasoning is that it comes down to the economy. Middle America shows no signs of recovery and seems to be more concerned with spending [its] disposable income on mortgage and car payments and putting food on the table.”
Below is the number of store closings per year for the past 10 years, according to ICSC:
Number of Store Closings
2001: 7,041
2002: 5,950
2003: 4,973
2004: 6,303
2005: 4,269
2006: 4,730
2007: 4,603
2008: 6,913
2009: 4,811
2010: 5,572
2011: 3,196
To find ot more about recent store closing, read these articles from RIS News:
Christopher & Banks Closes 100 Stores, Cuts Workforce
Syms and Filene's File for Chapter 11 Bankruptcy Protection