Malls shedding stores at record pace

This will be much bigger than the subprime mortgage crisis:
Gerald Celente: The Collapse of 2009; The Greatest Depression
Mass Retail Closings: About 220,000 stores may close this year


Vacancy rates at strip malls, neighborhood markets and community centers accelerate as retailers confront spending slump, industry report says.

NEW YORK (CNNMoney.com) — Strip malls, neighborhood centers and regional malls are losing stores at the fastest pace in at least a decade, as a spending slump forces retailers to trim down to stay afloat, according to a real estate industry report.

The consequence for consumers: Fewer stores to shop and less product choice.

In just the first quarter of 2009, retail tenants at these centers have vacated 8.7 million square feet of commercial space, according to the latest report from New York-based real estate research firm Reis.

That number exceeds the 8.6 million square feet of retail space that was vacated in all of 2008.

Reis’ report shows that store vacancy rates at malls rose 9.5% in the first quarter, outpacing the 8.9% vacancy rate registered in all of 2008, and marking the largest single-quarter jump in vacancies since Reis began publishing quarterly figures in 1999.

“These record numbers are symptomatic of the pervasive weakness that we’re seeing across economic sectors,” said Victor Calanog, director of research with Reis.

“Consumers are worried about their asset bases and they aren’t buying things,” he said. “Their home values and retirement accounts are still reeling, and consumers remain concerned about future income as job losses accelerate.”

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Mass Retail Closings: About 220,000 stores may close this year

About 220,000 stores may close this year in America, says our guest, retail consultant Howard Davidowitz of Davidowitz & Associates.

As more Americans save and spend less, it’s clear there’s too much retail space. Just visit Web site deadmalls.com and track retail’s growing body count. And luxury retailers? They’re on “life support,” Davidowitz says.

Among the brandname stores Davidowitz says are in trouble:

  • Nordstrom
  • Neiman Marcus
  • Tiffany
  • Jeweler Zale Corp.
  • Saks
  • J.C. Penney
  • Sears

Don’t miss: Gerald Celente: The Collapse of 2009; The Greatest Depression

Read moreMass Retail Closings: About 220,000 stores may close this year

Gerald Celente: The Collapse of 2009; The Greatest Depression

If Nostradamus were alive today, he’d have a hard time keeping up with Gerald Celente.
– New York Post

When CNN wants to know about the Top Trends, we ask Gerald Celente.
– CNN Headline News

There’s not a better trend forecaster than Gerald Celente. The man knows what he’s talking about. – CNBC

Those who take their predictions seriously … consider the Trends Research Institute.
– The Wall Street Journal

A network of 25 experts whose range of specialties would rival many university faculties.
– The Economist

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17. Januar 2009
Source: YouTube

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Company selling food past its best-before date thrives in economic crisis

A company which specialises in selling food past its best-before date has seen a 10-fold rise in sales as shoppers hunt for bargains in the economic crisis.

Approved Food, an online retailer, has witnessed such a large increase in trade that it has to shut down its website for two days a month to clear order backlogs.

The Sheffield-based firm’s founder, Dan Cluderay, said: “We have seen a significant rise in interest, probably due to the credit crunch and our low prices.”

Approved Food sells 750g jars of Nutella chocolate and hazlenut spread with a best-before date of January 4 for £1. The same product in Tesco sells for £2.55.

Bargain hunters can also pick up 400g tubes of Marmite Big Squeeze, best before February, for £2, while Tesco charges £2.47 for a jar half that size.

Mr Cluderay said the rise in sales was most pronounced since last September’s banking crisis.

While products past their best-before date might be past their prime, they are still safe to eat, the Food Standards Agency said.

Read moreCompany selling food past its best-before date thrives in economic crisis

440 retailers to go bust in first four months of the year, analysts predict

Nearly 26 retailers will collapse every week in the first four months of the year, a leading retail analyst has predicted.

Morgan - 440 retailers to go bust in first four months of the year, analysts predict
Morgan, the High Street fashion chain, has collapsed into administration Photo: AFP/GETTY IMAGES

The forecast comes as Morgan, the French fashion chain, becomes the latest victim of the crisis on the high street, collapsing into administration. It joins a lengthening list of shop groups to have failed this week alone, including clothing store USC, Adams childrenswear group and Olan Mills the photography studio.

Experian, a data company which analyses the sector, predicts that a total of 440 retail businesses will go into administration in the first four months of 2009, equating to nearly 26 every week. This would be the worst period for shopkeepers since the depths of the winter of discontent thirty years ago.

Very few shops will escape completely unscathed, Experian predicts, with major chains – with branches on most high streets – as well as small, individual retailers all being hit by the severe consumer downturn.

Read more440 retailers to go bust in first four months of the year, analysts predict

Retailers may close 73,000 stores; Wave of store closings, bankruptcies and takeovers

For sale signs sit on the window of a former Circuit City store in New York, on Dec. 29, 2008. Photographer: Jeremy Bales/Bloomberg News

Dec. 29 (Bloomberg) — U.S. retailers face a wave of store closings, bankruptcies and takeovers starting next month as holiday sales are shaping up to be the worst in 40 years.

Retailers may close 73,000 stores in the first half of 2009, according to the International Council of Shopping Centers. Talbots Inc. and Sears Holdings Corp. are among chains shuttering underperforming locations.

More than a dozen retailers, including Circuit City Stores Inc., Linens ‘n Things Inc., Sharper Image Corp. and Steve & Barry’s LLC, have sought bankruptcy protection this year as the credit squeeze and recession drained sales. Investors will start seeing a wide variety of chains seeking bankruptcy protection in February when they file financial reports, said Burt Flickinger.

“You’ll see department stores, specialty stores, discount stores, grocery stores, drugstores, major chains either multi- regionally or nationally go out,” Flickinger, managing director of Strategic Resource Group, a retail-industry consulting firm in New York, said today in a Bloomberg Radio interview. “There are a number that are real causes for concern.”

Read moreRetailers may close 73,000 stores; Wave of store closings, bankruptcies and takeovers

25% of Retailers May Go Bankrupt


Retailing has always been a tough business. Now it’s a brutal business. Some observers now predict that more than 25% of retailers may go bust in the the next two years.

Paul Kedrosky:

A great WSJ quote driving home how this truly is retail’s Schumpeterian moment:

Analysts estimate that from about 10% to 26% of all retailers are in financial distress and in danger of filing for Chapter 11. AlixPartners LLP, a Michigan-based turnaround consulting firm, estimates that 25.8% of 182 large retailers it tracks are at significant risk of filing for bankruptcy or facing financial distress in 2009 or 2010. In the previous two years, the firm had estimated 4% to 7% of retailers then tracked were at a high risk for filing.

Read more25% of Retailers May Go Bankrupt