Retail Brick and Mortar Meltdown Continues

The Retail Store

"Brick-and-Mortar Meltdown" 

is store closings, job losses, 

bankruptcies, and liquidations. 

But Total retail sales, 

including online sales, 

do not reflect a slowdown.

US retail sales were up +3.3% 

in July 2019, compared to 

July 2018, due to a boom

in e-commerce.

But brick-and-mortar 

department stores, 

clothing stores, and 

many other types of stores 

in malls, are getting crushed. 

Store liquidations in 2019 

have already exceeded 

full-year 2018, which was 

not a good year.

This year, through July 2019, 

about 7,500 store closings 

have been announced, 

up 20% from the full-year 

total in 2018 (5,864), 

according to Coresight 

Research.

The full-year total in 2019 

is on track to reach 12,000, 

about 50% more than 

the 2017 record,

when 8,139 stores 

were scheduled 

for liquidations,

2018 did not beat 2017,

except for the square-footage 

of liquidated stores, 

because 2018 was a year 

of many big store liquidations, 

including Sears, Kmart, 

Bon-Ton, and Toys “R” Us, 

resulting in a record total

of 155 million square feet 

of retail space vacated 

by liquidations, 

according to estimates 

by Costar.

This year, so far, 

it's mostly smaller stores, 

such as the 2,700 

Payless Shoesource stores, 

that are being closed.

But a list of retailers 

on bankruptcy and 

liquidation watch, 
has to include 
J.C. Penney, 

with shares selling 
for 57 cents yesterday.

More bad news,

just last week:

(1)

A’Gaci, a young women’s 

fashion retailer based in Texas, 

filed for Chapter 11 bankruptcy 

protection, for the second time, 

and will liquidate. 

The remaining 54 stores 

in seven states and Puerto Rico 

will be closed. most this month !

(2)

Walgreens Boots Alliance 

said in an SEC filing 

that it would close 

“approximately 200” stores 

in the US.

( about 3% of the company's stores )

(3)

TransformCo, which Eddy Lampert 

set up to buy certain Sears assets 

out of bankruptcy earlier this year, 

including 425 stores, announced 

that it would close 21 Sears stores 

and 5 Kmart stores.

(4)

Luxury department store, 

Barneys of New York, 

filed for Chapter 11 bankruptcy. 

Its restructuring plan 

calls for closing 15 

of its 22 stores.