Hundreds of US department store closures likely: report

Industry struggles amid rise in online retail

TRD LOS ANGELES /
May.May 17, 2017 10:30 AM
Macy’s Herald Square

From TRD New York: Hundreds of department stores will have to close if companies want to get back to normal revenues, according to a new report.

A year ago Green Street Advisors predicted that around 800 stores would likely need to close, but now the research firm said the number has risen as mall operators grapple with flagging sales and growing competition from online retail.

“Just a year later, the 800 number looks much too light on a strict sales productivity standpoint and is much lower than what will ultimately be needed as the industry will likely need to massively rationalize its store count as it reinvents its business model,” the firm said, according to the Wall Street Journal.

Department store operators Macy’s, Kohl’s, J.C. Penney and Hudson’s Bay all reported falling sales in the first quarter.

A broader decline in brick-and-mortar retail revenues is hitting Manhattan landlords hard, with availability rates in some prime markets like Times Square and Fifth Avenue near Bryant Park hovering close to 30 percent in the first quarter, according to Cushman & Wakefield.

Earlier this year J.C. Penney said it would close 138 stores, while Macy’s previously said it plans to shutter 100.

Hudson’s Bay has also explored stacking apartments and office space above its Lord & Taylor flagship on Fifth Avenue to make up for falling revenue. [WSJ]Konrad Putzier


Related Articles

arrow_forward_ios
Jason Illoulian and the Cemex plant

Faring makes $30M assemblage play on WeHo/LA border

From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman

Graymark, Nuveen pay $97M for El Segundo creative office

La Mirada industrial building

Clarion pays $77M for La Mirada industrial project

510 Park Avenue and CEO of Monster Beverage Rodney Sacks

Monster Beverage affiliate guzzles down industrial project in San Fernando

From left: Saeed Nourmand, Michael Nourmand, Grant King and Richard Heyman

Relevant Group sues Nourmand & Associates’ founder, alleging extortion over hotel projects

Centennial founder and CEO Steven Levin with a rendering of the project

Centennial Real Estate approved for sprawling $300M mixed-use village

Apartment complex at 1435 Stanley Avenue and Raintree Partners CEO Jeffrey Allen (Credit: Apartment Finder)

Raintree Partners spends $79M on Glendale multifamily portfolio

LA Mayor Eric Garcetti

Down goes Measure EE: Property tax referendum routed at polls

arrow_forward_ios