Retail stores are closing at an epic pace. In fact, the retail industry could suffer far more closures this year than ever before. Brokerage firm Credit Suisse reported that, it’s possible 8600 brick and mortar stores will close their doors in 2017. To put this into perspective, after barely a quarter into 2017, there have already been more closings than all of 2008. Brick and morter store fronts have been eclipsed by ecommerce masters like Amazon. The toll it has taken can be seen in emptying shopping centers all across the country. Among the casualties so far this year; Bebe said it’s closing all of its retail spaces, JCPenny is closing 138 stores by July, Payless is closing hundreds of stores, and Macy’s said it’s shutting down 68 locations. And one-time retail giant Sears, which also owns Kmart, says it has substantial doubt that it can survive.
Of the roughly $1.6 billion freed up from the JC Penny’s and Macy’s store closings, off price retailers are in a position to capture up to $1 billion of these sales in the next 12 months. These off price retailers include Burlington, Marshalls, T.J. Maxx, and Ross stores. Obviously, old prototypes for yesterday’s businesses do not work today.
So, what can be learned by these massive failures? Sure, on-line buying has taken a huge bite out of the brick and mortar sales. It is also safe to assume that many of the retail giants were asleep at the wheel, feeling that they were too big to fail, or maybe not forward-thinking enough to grow their on-line businesses.
But even more important is the fact that when a retailer goes out of business or new way of doing business evolves, another opportunity becomes available to those with the foresight to predict, the agility to move quickly, and the infrastructure in place to grab that opportunity before anyone else.
We are Empire Business Management, and we have all the tools in place to make your dreams come true. We can identify the current business opportunities out there, we can advise you on how to best use them to grow and maintain your business, and we can spot struggling businesses that with a little help, can become solid businesses available for sale. We are in the market everyday and experience the best deals day in and out. Give us a call. Our doors are always open to discuss.