“The Retail Bubble Has Now Burst”: A Record 8,640 Stores Are Closing In 2017

Sunday, April 23, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Apr 22, 2017

Thousands of new doors opened and rents soared. This created a bubble, and like housing, that bubble has now burst.”

– Richard Hayne, Urban Outfitters CEO, March 2017

The devastation in the US retail sector is accelerating in 2017, and in addition to the surging number of brick and mortar retail bankruptcies, it is perhaps nowhere more obvious than in the soaring number of store closures.

While the shuttering of retail stores has been a frequent topic on this website, most recently in the context of the next “big short”, namely the ongoing deterioration in the mall REITs and associated Commercial Mortgage-Backed Securities and CDS, here is a stunning fact from Credit Suisse:“Barely a quarter into 2017, year-to-date retail store closings have already surpassed those of 2008.”

According to the Swiss bank’s calculations, on a unit basis, approximately 2,880 store closings were announced YTD, more than twice as many closings as the 1,153 announced during the same period last year. Historically, roughly 60% of store closure announcements occur in the first five months of the year. By extrapolating the year-to-date announcements, CS estimates that there could be more than 8,640 store closings this year, which will be higher than the historical 2008 peak of approximately 6,200 store closings, which suggests that for brick-and-mortar stores stores the current transition period is far worse than the depth of the credit crisis depression.

As the WSJ calculates, at least 10 retailers, including Limited Stores, electronics chain hhgregg and sporting-goods chain Gander Mountain have filed for bankruptcy protection so far this year. That compares with nine retailers that declared bankruptcy, with at least $50 million liabilities, for all of 2016. On Friday, women’s apparel chain Bebe Stores said it would close its remaining 170 shops and sell only online, while teen retailer Rue21 Inc. announced plans to close about 400 of its 1,100 locations.

Broken down by retailer, either in bankruptcy or not yet:

The Rest…HERE

One Response to ““The Retail Bubble Has Now Burst”: A Record 8,640 Stores Are Closing In 2017”

  1. Robert Edward Lee

    And another 8,640 new WEBSITES opened up. Get a job snake oil huckster. When’s the last time you went shopping ? You use gas, wear and tear, time …… THEN, at the store 99 % of the employees shouldn’t even BE in America !!! THEN … the 3rd worlders give you the wrong product and if you didn’t think to open it and look in …. you’ld have to come BACK to the 3rd world run store.

    Online is the future … at least until we deport about 50 + million illegals.

    #3210896

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