Department store closures have long dominated retail apocalypse rhetoric.
While they do not necessarily spell the downfall of retail, struggling department stores have led mall closures since the turn of the decade.
From 2011 through 2016, Sears Holdings Corp SHLDQ has led mall store closures, with 130, Chain Store Age reported, citing ICSC numbers. J C Penney Company Inc JCP and Macy’s M have closed 102 and 89 stores in the same time frame, respectively.
Among the top 10 largest declines in mall store numbers, seven were department stores, including Dillard’s, Inc. DDS, Belk, Kohl’s Corporation KSS and Burlington Stores Inc BURL.
Company-owned stores have seen the biggest increase in mall openings in this same time frame, with Under Armour Inc UAA leading the way. The company has pursued aggressive growth in its branded stores and opened 39 of them from 2011-2016.
Fast fashion retailer H&M saw the second-biggest increase in mall openings with 30 stores.
Michael Kors Holdings Ltd KORS, American Eagle Outfitters AEO, Dicks Sporting Goods Inc DKS, Nike Inc NKE, Adidas AG (ADR) ADDYY and Armani outlet rounded out the top 10.
Storch Advisors CEO Gerald Storch said on CNBC Friday that retailers offering truly differentiated products will win, naming Nike, Lululemon Athletica inc. LULU, Walmart Inc WMT and Amazon.com, Inc. AMZN as examples.
"The losers are those who sell undifferentiated product that you get everywhere. In the internet era, their prices will come crashing down. You see company's like Sears. Penney's in is big trouble — this is their last big year. If it doesn't work, it's never going to work," Storch said.
Photo by Dustin Blitchok.
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