Hundreds of US department store closures likely: report

Miami /
May.May 17, 2017 01:30 PM

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
Nautical Ventures Marine CEO Roger Moore and Holman Automotive CEO Brian Bates with 1400 South Federal Highway (Google Maps)

Holman sells former Fort Lauderdale BMW dealership for $6M

Holman sells former Fort Lauderdale BMW dealership for $6M
Rendering of the Dorsey with Alex Karakhanian, Jon Paul Perez and Tricera’s Scott Sherman and Ben Mandel (iStock)

Related scores $88M construction loan for Dorsey project in Wynwood

Related scores $88M construction loan for Dorsey project in Wynwood
12301 West Sunrise Boulevard with Raanan Katz, Bob Barth, Zach Zalben and Stanley Black (Google Maps, Linkedin, Getty)

Miami Heat minority owner continues Best Buy shopping spree with $12M Plantation deal

Miami Heat minority owner continues Best Buy shopping spree with $12M Plantation deal
From top: Ruben Lujo from Broward Meat, SunCap's Scott Auker and Ross Realty's Barry Ross with Penn Dutch Plaza shopping center in Margate (Linkedin, Google Maps)

Part of Margate shopping center formerly anchored by Penn Dutch sells for $12M

Part of Margate shopping center formerly anchored by Penn Dutch sells for $12M
Costco CEO Craig Jelinek and 8300 Park Boulevard, Miami (Costco, Google Maps, iStock)

Costco sells site near Doral to Trammell Crow for $19M

Costco sells site near Doral to Trammell Crow for $19M
(Google Maps)

Here are South Florida’s biggest retail leases in 2020

Here are South Florida’s biggest retail leases in 2020
(Getty)

Here are South Florida’s largest retail sales of 2020

Here are South Florida’s largest retail sales of 2020
Alex Rosemurgy and 2350 to 2390 North Federal Highway (Twitter, Google Maps)

Rosemurgy sells Pompano Beach shopping center for $10M

Rosemurgy sells Pompano Beach shopping center for $10M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...