As we close in on the halfway point of 2017, we wanted to take a look at how the retail landscape is changing. Since 2016, it’s been apparent that it’s no longer business as usual for traditional stores. Facing slumping sales, the quarterly financial reports for the apparel retail sector have read like boilerplate copy, each featuring the same references to changing consumer tastes, slow mall traffic and the online sales surge. And the result of all of this turmoil has been an endless litany of store closing announcements.
While some closures are the result of bankruptcies from which retailers will re-emerge, others will ultimately succumb to the current climate. For the ones that have managed to survive, store closures have been a way for them to create liquidity, bring their fleets in line with consumer foot traffic and focus on their e-commerce businesses. No matter the reason, the exits from malls and shopping centers have created a glut of real estate in B and C locations, while A locations are flourishing with a mix of the best retail tenants and experiential business to act as a draw.
(Read more about how malls are transforming: Don’t Write That Mall Obit Yet)
See how the recent spate of closures has hit the apparel industry, in general, and specific categories, in particular.