Are Major Store Closures Over?

It’s been kind of quiet on the mass store-closure front, hasn’t it?

Sure, we’ve seen a lot of damage with the Circuit City/Linens closures, and it seems like there could be unsurprising news from Blockbuster some time soon. But didn’t you think that by this time in 2009 there would be more fallout from major chains?

Among the good news is that Office Depot’s management says its major store-shutting efforts are over. And Supervalu is also slowing its paring back of Albertsons units.

Is there anyone you see on the verge of closing tons of stores, or do you think the worst is over right now?

10 Responses to “Are Major Store Closures Over?”

  1. 1 Tim April 29, 2009 at 9:45 am

    Unfortunately, we feel they are not. After reviewing the trending data we are seeing and talking to people in the industry, as well as, law firms, they are forecasting that we will be seeing the announcement of more store closings and bankruptcies in the retail industry. I hope they are wrong. We will know more in July.

  2. 2 Stuart April 29, 2009 at 9:53 am

    Hard to tell. I think most retailers with expansion plans have been reduced. This might free up capital that can be redirected to the survival of their existing units. Along with reducing costs in operations including labor and rent reductions, many retailers thought to have been in trouble might well survive and then thrive once their is a serious recovery, only if they don’t make the same mistake again with over saturation of their brand.

  3. 3 Neil April 29, 2009 at 12:43 pm

    Would not be surprised at all if GolfSmith goes down before year’s end ’09.

  4. 4 Peter April 30, 2009 at 8:06 am

    Unfortunately, we feel they are not. Watch list? Michael’s, Stein Mart, Pier One, & Burlington Coat Factory. The worst has yet to come.

  5. 5 john April 30, 2009 at 8:06 am

    There will be more store closings, weak locations of good retailers and all locations of weak retailers. However, I believe new stores and store concepts will step in overtime, better capitalized, with better concepts. Retailers will have to move forward with less debt on their balance sheets, which means they will expand at a slower pace, which means existing store locations will do better over time….

    I think this will be a buying opportunity for good retail centers with current vacancies. New concepts will open at these locations first.

  6. 6 Dan April 30, 2009 at 8:11 am

    I cannot imagine Riteaid survives much longer.

  7. 7 kin powell April 30, 2009 at 1:14 pm

    No Ian, they won’t finish until’11 & retail sales won’t equal “06#s ’til ’12 @ earliest!

  8. 8 Broker April 30, 2009 at 4:38 pm

    I think that you will see continued pruning from most retailers. If it costs less to pay the rent on a vacant store they will close it. There also may be some chapter 11 filings among some smaller box operators.

  9. 9 Dealmaker May 1, 2009 at 9:05 am

    There are more to come…you can bet on that.

  10. 10 RevolvingDoor July 11, 2009 at 6:39 pm

    A good buying opportunity does not constitute buying into a bubble with inflated real estate prices built in.

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