Kohl’s, J.C. Penney and Walmart Will Close The Most Stores In 2017
U.S. retailers have a problem they can’t easily resolve: They have too many stores. And even though they’ve already announced slews of store closings, it’s increasingly likely they’ll have to shutter even more over the next few years. That’s especially the case as consumers keep shifting their spending online, which has left the U.S. awash in unwanted retail space, or “overstored.”
According to real estate information firm CoStar, nearly 1 billion square foot of retail space will be “rationalized” in the coming years through store closures and conversions to other uses. Many retailers also are seeking rent reductions as their productivity has slumped from an industry average of $330 in sales per square foot from $350 per square foot a decade ago.
The level of “overstoring” may only get worse. Retail analyst Jan Rogers Kniffen expects about half of all retail sales to be online by 2030, a huge increase from current figure of about 10 percent.
“A lot of these retailers are still in denial,” said Brian Yarbrough, a retail analyst at Edward Jones. “I think the Kohl’s (KSS), the J.C. Penneys (JCP) of the world, they’re in denial. At some point, there’s probably not a need for 2,400 Kohl’s and J.C. Penney’s across the United States. There’s probably not a need for 5,800 Walmart (WMT) Supercenters.”
Officials from J.C. Penney didn’t immediately respond to a request for comment for this story. A Kohl’s spokesperson declined to comment beyond pointing to executive statements on earnings conference calls about “the importance of stores.” Walmart spokesman Randy Hargrove said the company doesn’t comment on analyst reports, but he noted that in October Walmart U.S. CEO Greg Foran said “next year you will see us put more capital allocation towards remodels versus new stores.” Hargrove added: “We still see a need for supercenters.”
You may be interested
Andrew Breitbart Exposed John Lewis As A Race Baiter 7 Years AgoThomasDishaw.com - Jan 21, 2017
To say that Andrew Breitbart was way ahead of his time is an understatement. The mysterious heart attack that claimed his life in 2012 ensured that he would not live on to see the huge impact he has had on todays society.
Is Your Coffee Killing You? Over 1,500 Chemicals Found In One CupThomasDishaw.com - Jan 19, 2017
Is your coffee killing you? Did you know your average cup of coffee has about 1,500 different chemicals? Each cup contains trace amounts of synthetic fertilizers, pesticides, herbicides, fungicides, and insecticides.
First GMO Apples to Hit U.S. Stores in FebruaryThomasDishaw.com - Jan 18, 2017
Add GMO apples to the list of fruit to avoid at the grocery store. According to the Organic Authority, ten "lucky" midwest stores (sense the sarcasm) will test market the genetically modified Golden Delicious apple in early February 2017.