Ten Thousand Retail Store Closures Expected By Year End
By Staff -- Gifts and Dec, 8/26/2009 10:36:00 AM
New York – As many as 10,000 retail stores are expected to close by the end of 2009, according to the Reviving Retail report by Grant Thornton LLP's Corporate Advisory and Restructuring Services.
According to Grant Thornton CARS national managing principal Marti Kopacz, retailers were faced with their biggest declines at the end of 2008. "Falling sales hit all regions of the country and nearly all retail sectors, challenging stores and pushing many to the brink of failure," said Kopacz. "Either retailers are contemplating bankruptcy, have already declared it or are announcing significant reductions."
To be among the survivors, Grant Thornton suggests that companies should focus on financial management and process improvement. Trends to watch include buyers choosing clicks over bricks, retailers using social networking sites to expand their business, private labels gaining ground over name brands, sustainability, loyalty programs, creative incentives, and tailoring product and service offerings.
To improve financial management, Grant Thornton CARS principal Scott Davis suggests financial management steps such as calculating and assessing ROI for pricing and inventory levels; determine funding capital for redesigns, new signage or point-of-sale systems; re-evaluate real estate and leverage information for lease reductions or improvements; consider tax ramifications for inventory levels and gift card revenues; manage costs by using a structured sourcing approach and conduct ongoing measurement of suppliers and contract compliance.
Hi Rhonda and Cynthia,
According to this article:
www.risnews.com/ME2/dirmod.asp?sid=&nm=&type=news&mod=News&mid=9A02E3B96F2A415ABC72CB5F516B4C10&tier=3&nid=AC2B68271290497C84F85A887201CC45
There were 5,770 store closings in 2008 and 4,603 in 2007. So 10,000 would be almost double last year and more than double the year before.
This article puts the previous high in 2001 at about 7,000 closings.
retailtrafficmag.com/retailing/trends/retail_closures_six_year_high_0625/
Hope this helps!
Meredith Schwartz - 2009-09-10 16:35:00 EDT
According to this article:
www.risnews.com/ME2/dirmod.asp?sid=&nm=&type=news&mod=News&mid=9A02E3B96F2A415ABC72CB5F516B4C10&tier=3&nid=AC2B68271290497C84F85A887201CC45
There were 5,770 store closings in 2008 and 4,603 in 2007. So 10,000 would be almost double last year and more than double the year before.
This article puts the previous high in 2001 at about 7,000 closings.
retailtrafficmag.com/retailing/trends/retail_closures_six_year_high_0625/
Hope this helps!
my question exactly - what is "normal" expected closure rate, what is the normal start - up rate & what is expected this year? does anyone have #'s?
Cynthia Webb - 2009-09-02 16:13:00 EDT
I was wondering of the 10,000 store closing how many would have closed anyway. How many stores close each year? Is it really up and by how much?
Ronda Wand - 2009-09-02 09:27:00 EDT
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