In these pages, on Feb. 1, we mentioned that “the popularity of U.S. shopping malls has seen a dramatic decline in the past several years.”
And the grim news continues. Here’s a March 31 CNBC headline:
Retail bankruptcies march toward post-recession high
The article says:
The number of retailers filing for Chapter 11 bankruptcy protection is headed toward its highest annual tally since the Great Recession.
Nine retailers have filed in just the first three months of 2017. That equals the number for all of 2016. It also puts the industry on pace for the highest number of such filings since 2009, when 18 retailers resorted to that action. …
The industry’s pain is far from over. The number of retailers on Moody’s distressed list is also at its highest level since the Great Recession, as several other chains that were targeted by private equity firms struggle to turn around their businesses. They include names like J. Crew and Claire’s Stores.
EWI’s April Financial Forecast also discussed retail store closures, and honed in on the sporting goods industry:
MC Sports, a 68-store sporting goods chain, announced last month that it will cease operations. Shares of The Finish Line, a sportswear retailer, plunged 19.5% on March 24 when the company announced a 4.5% decline in sales. In the fourth quarter, The Finish Line “made the decision to get more aggressive on pricing to be competitive and clear slow-moving product.”
As the developing deflationary trend runs it course, the publication says:
Many of MC Sports’ competitors will join the firm in bankruptcy.
Now is the time to learn more about deflation.