Customs Stores Are Surging And The Global Retail Industry Is Closing Up Again.

Tesco announced that it will close 43 unprofitable stores and close its headquarters in Chase Hunt, UK, in 2016 to deal with the biggest crisis since its establishment in 95 years. J.C. Penney announced that it will close 39 stores, accounting for 4% of its total stores, followed by Messi's Department's announcement that it will close 14 stores early this year. Previously, Wet Seal, a young clothing retailer, announced the closure of more than 500 stores, accounting for about 2/3 of its total stores. The women's clothing brand Deb Shops was ruled bankrupt and closed nearly 300 stores to liquidate some debts. Bank Fashion, a popular fashion retailer in the UK, has entered bankruptcy management. 1555 employees are facing the possibility of unemployment.

Sears is also trying to save its sales declining situation. The company has accelerated the shutting down of 235 outstanding stores. This is nearly two times that in August of 2014 when Sears announced that it planned to close down 130 stores. RadioShack, the second largest electrical chain store in the United States, closed 175 stores in 2014 and is negotiating with lenders to win support for closing 1100 stores.

These are just the tip of the iceberg, and more retail businesses are or are already reducing their businesses.

Some analysts pointed out that the current number of retailers is too large, resulting in imbalance between supply and demand, especially now that more and more consumers choose online shopping. Secondly, the idea of opening shops in the suburbs is no longer applicable to the current demographic analysis, because more and more young people are flocking to cities.

But apart from these external reasons, Retailer They also face their own internal problems. For example, many young people. Clothing brand The closure is because their products are no longer attractive to target customers. They are turning to fast fashion brands such as H&M and Zara. The latter two are developing rapidly and have created many new billionaires. It is not difficult to explain why UNIQLO could increase its profits by 63.9% in the first quarter of 2015 when the retail industry was closed.

At the same time, not all closures mean "overburdened". Some enterprises concentrate their firepower by actively closing some of the poorer stores. achievement Good store development, in order to achieve "broken arm to survive".

Although this is bad news for employees who are out of work, Stacey Widlitz, President of SW Retail Advisors, thinks this is a breeze that retailers already need.

"This is the best news I have heard for a long time. We have built too many stores, and retailers are reluctant to face the reality and cut down a large number of existing stores. It is only the first round, and we will soon see more and more stores closing. For retail, however, "dieting" is a very healthy sign now, and it should be welcomed as an investor.

Almost every year there will be a lot of news about store closes in the first quarter, and then there will be panic. But we will soon find that new retail businesses are coming out. New tenants who fill the gap may be gyms, small clinics, etc. For example, Primark, an Irish clothing retailer, has already rented 7 former Sears stores.