Bloomberg.com published an article this month, titled “Stores are Closing at a Record Pace as Amazon Chews up Retailers” With several large chains announcing bankruptcy and plans to close hundreds of locations, the estimate is that 10% of retail space will be left empty, potentially forcing malls and strip centers to close or reinvent themselves.
Of course, this also affects jobs. The article points out that retailers cut around 60,000 positions between February and March alone. With the expectation of over 8600 store closings in 2017, these figures will increase.
Many brands are attempting to “re-emerge as e-commerce brands”, to keep up with the on-line shopping movement. However, according to the article, 75% of the time, shoppers prefer physical stores but seem to moving to the class A malls, which continue to thrive. “The key is creating the right experience, whether it’s online or off. Management needs to be fixated on speed of delivery, speed of supply chain, and be able to test read and react to new and emerging trends.”