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    Is It Expected To Close 800 Stores To Make The US Department Stores Pick Up?

    2016/4/26 15:03:00 32

    Shopping CenterAmerican Department StoreMessi General StoreRetail Trade In 2016

    According to the latest report issued by Green Street Advisors, a real estate research and adjustment agency, if the sales benefit of us department stores per square foot per square foot (after inflation adjusted) is expected to rise to the level of 2006, it is estimated that about 800 stores need to be closed.

    Retail business in 2016

    Although not seen in the first quarter of last year, a large number of chain stores were closed.



    According to Green Street's prediction, J.C. Penney, Sears, Messi (Macy`s), Dillard`s, Bon-Ton and Nordstrom were closed to 320 (31% of the existing stores), 300 (43%), 70 (9%), 60 (20%), 40 (15%) and 30 (30).


    2015

    Federated Department Stores

    The average sales per square foot was $165, down 24% from 2006, but at the same time, the proportion of physical store area was reduced by only 7%.

    In recent years, major department stores have closed stores for various reasons.

    At the beginning of this year, Messi department store announced that it will lay off or deploy 3000 employees, and the affected employees will account for 2% of the total number of employees. It will close 40 stores and hope to save 400 million dollars a year.

    Many retail chains, such as Sports Authority and Abercrombie&Fitch, have also decided to scale down to meet the current business environment.

    The former has applied for bankruptcy protection to restructure and is handling 140 stores; the latter has closed about 50~60 stores a year in the past few years.

    Sears (Sears) and

    Macy's

    (Macy's Inc., M) has already rented out some stores to other companies in order to increase the productivity of the stores, and provide a reason for customers who are more and more inclined to online shopping to have another way to shop.

    The latest news is that Sears, a troubled Sears department, announced in April 21st that in order to reduce costs and increase profits, 68 Kmart stores and 10 Sears stores will be closed this summer.

    Most of these stores will be closed in late July, and two Kmarts will be closed in September.

    The closing of stores will reduce Sears's opening range by 5%.

    Sears's sales have been declining, and sales during the holiday season are also disappointing.

    In the last quarter, Sears's sales decreased by 580 million US dollars, and the downward trend continued to widen.

    Nordstrom, an upscale department store in the US, announced in April 18th that it would lay off 350-400 people by the end of the second quarter.

    Nordstrom expects the growth rate of same store sales in 2016 is only 0-2%, less than 2.7% in 2015.

    WAL-MART, the world's largest retailer, has lost 0.7% to $482 billion 100 million in revenue in the year 2016 (up to January 31, 2016), and S&P Capital IQ data showed at least a record drop in 1980.

    US official figures show that retail sales and catering services in the US grew by 2.2% in 2015, the worst since 2009 (recession 7.2%), and the third worst record since 1993.

    At the same time, at the same time, sales of non store retailers in 2015 increased by 6.1%, and the first rise in the 4 year growth rate was high.

    DJ Busch, senior analyst at Green Street, pointed out that if department stores are really active in closing down physical stores and the United States

    Hundred families

    Shopping Mall

    Fear will thus lose the aura of gathering crowds.

    Retail stores in the US need to be repositioned and actively pformed.

    In a speech at the annual meeting of the National Retail Federation at the beginning of the year, Rick Caruso 2014, the founder and chief executive of Caruso Affiliated, the largest unlisted real estate company in the United States, pointed out that if the US mall does not actively pform, it may disappear in 10-15 years.

    He said, physical stores can no longer continue to simply position themselves as retail businesses, and should be included in catering and sightseeing services in the future, so that customers at home feel at home.

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