So many big box stores going out of business.

Haven't been to the mall in a few years, went with the wife today, and I was surprised at how many stores were either closed or going out of business. These were just the ones I saw today;
Sports Authority, Forever 21, Aeropostle and Pac Sun.
I know everyone shops online and these stores are mostly trash, but it was pretty surprising to see. Phone Post 3.0

Al those suck, the only thing pacsun carries that is ok are the Travi$ Scott t shirts, the rest is trash Phone Post 3.0

I knew sports authority would close. I am surprised to see forever 21 go down and aero. They were always flocked with people in their stores. Phone Post 3.0

pac sun is part of SA

I was just saying to my buddy who knows commercial real estate extensively that it surprises me malls are still packed. He was confident that most will be done in the next thirty years. I could t imagine not at least seeing the item I was buying. Phone Post 3.0

People will really regret when these clothing stores start going under. Phone Post 3.0

Forever 21, Pac Sun, aeropastale, are definitely not big box. Neither is Sports Authority actually.

Kmart, Sears, JC Penny(!?), those are big box stores that are going under or close to it. Phone Post 3.0

Samoa - Forever 21, Pac Sun, aeropastale, are definitely not big box. Neither is Sports Authority actually.

Kmart, Sears, JC Penny(!?), those are big box stores that are going under or close to it. Phone Post 3.0
Sorry about not using the term big box correctly. I hope you'll forgive me. Phone Post 3.0

Samoa - Forever 21, Pac Sun, aeropastale, are definitely not big box. Neither is Sports Authority actually.

Kmart, Sears, JC Penny(!?), those are big box stores that are going under or close to it. Phone Post 3.0
JCPenney could close 500 stores and still be fine. Same with Macy's. Neither is going anywhere within at least the next five years. Macy's is currently in the process of closing stores.



Sears/Kmart are fucked. They've been fucked for a long time, but it takes a long time for these big box stores to go under barring something extreme doesn't happen. Phone Post 3.0

LFTM -
Samoa - Forever 21, Pac Sun, aeropastale, are definitely not big box. Neither is Sports Authority actually.

Kmart, Sears, JC Penny(!?), those are big box stores that are going under or close to it. Phone Post 3.0
JCPenney could close 500 stores and still be fine. Same with Macy's. Neither is going anywhere within at least the next five years. Macy's is currently in the process of closing stores.



Sears/Kmart are fucked. They've been fucked for a long time, but it takes a long time for these big box stores to go under barring something extreme doesn't happen. Phone Post 3.0
Yeah I don't think Ellison would agree with you that they could close half their chain and be just fine. The street wouldn't either. In the mid 2000's they were a 20 billion dollar chain with 1,100 stores. Now they are a 1,000 store chain that does 12 billion. Marvin has stopped the bleeding no doubt but they have long term issues like locations. 75% of their stores are located in "B" or "C" malls. Customer traffic is falling. Some consultants are predicting 20% mall closures in the next 10-15 years. That's not great news for JCP. Phone Post 3.0

I predict there with be a pendulum effect. Obviously the true big box retailers with the inflated prices will soon be gone, with that will also be a large decline in these 2nd tier malls, strip malls and plaza's dominated by a handful of large retailers.

I think state of the art high end malls will become more common or surge. People will eventually grow bored of online shopping and miss having a weekend "destination" to relax, shop and eat.

Right now online shopping is all the rage, and it is largely here to stay. The days of Sears, Kmart, Macy's and JCPennies etc. all competing for the same shopper are antiquated and gone. However, a really high end experience with great food and entertainment still has a place in the market. Generally speak the rich are recession proof, so they still like to get out there and actually buy their goods at actual storefronts, provided the atmosphere is good. 

Low end malls are dying. Online is killing
Them. Phone Post 3.0

Where are people going to go?? I think the market will correct itself and malls will make a comeback. Perhaps brick and mortar stores will figure out a way to sell things for less money than online? Phone Post 3.0

Sports Authority was bound to go under once it faced competition.

Filthy, dirty stores, incompetent employees, selection limited to almost all low-end goods.

Amazon, eBay, and Craigslist are killing the market for big box stores that sell overpriced crap.  People have learned that you can now comparison shop, and get discounted prices through either outlets or by going online, so people no longer pay retail prices if they can help it.

This smarter shopping is not only a result of technology and internet access to products, but it's also a result of Wall Street looting everyone, putting people out of work, and killing the economy.  The economy is propped up but still hasn't recovered since 2008.  For people who have gotten back to work, they learned a lesson about the value of things and their spending habits.  I think many people have not fallen back into their old stupid spending habits, and are buying less, or just spending less for what they need.

In an economy that requires growth to sustain itself, it doesn't work when people learn, or are forced, to cut back their spending.  Since strategies have changed with spending, it'll be a very long time before you see another spending spree like you did during the mid-2000's.  If the public ever has the expendable income it had when things were good, then you'll see big box stores start to sprout up again, but they'll change their model and consolidate products or brands, and they'll focus more on online service.

Sweet_Baby_Jesus -
Samoa - Forever 21, Pac Sun, aeropastale, are definitely not big box. Neither is Sports Authority actually.

Kmart, Sears, JC Penny(!?), those are big box stores that are going under or close to it. Phone Post 3.0
Sorry about not using the term big box correctly. I hope you'll forgive me. Phone Post 3.0
Never!! Phone Post 3.0

Was talking about this the other day with the lady. Does anyone think this may open the door for a mom n pop type store again? I realize the Internet is killing a lot of brick and mortar stores but could it mean that there's an opportunity for a store with a lower overhead to flourish again? My thinking is that I don't always want to shop online. Sometimes I need something faster than even 24hr shipping. I'll always find a reason to have to stop to a store on the way to/home from some place. Phone Post 3.0

jcblass - 


I predict there with be a pendulum effect. Obviously the true big box retailers with the inflated prices will soon be gone, with that will also be a large decline in these 2nd tier malls, strip malls and plaza's dominated by a handful of large retailers.



I think state of the art high end malls will become more common or surge. People will eventually grow bored of online shopping and miss having a weekend "destination" to relax, shop and eat.



Right now online shopping is all the rage, and it is largely here to stay. The days of Sears, Kmart, Macy's and JCPennies etc. all competing for the same shopper are antiquated and gone. However, a really high end experience with great food and entertainment still has a place in the market. Generally speak the rich are recession proof, so they still like to get out there and actually buy their goods at actual storefronts, provided the atmosphere is good. 


This is a really good post - VU.

Companies make money via utilizing one of two models - being margin-based or volume-based. Being volume-based has WAY more upside, but the more volume you do, the more volume you (generally) have to do because margins & volume are usually inversely proportional.

Thing is that volume-based businesses are generally commodity-centric and customers are won via price and / or convenience. There's usually no inherent loyalty (or anything else) built in - people just frequent the establishment because it's cheap and / or it's convenient, thus building habit.

When something comes along that can break that habit, it's easily broken. That's what online shopping has done because the prices are just as good (if not better) and Amazon's massive strides in logistics making 2-day shipping the (almost expected) gold standard means convenience is now a toss up.

Do you get in the car, drive across town, and hassle traffic & people in the store or just wait 36-48 hours & have it delivered to your doorstep?

The pendulum will swing back from online shopping a little, but not significantly. So if volume-based businesses want to continue to thrive, then they sorta have to do what a lot of the publishing industry hasn't done - realize the landscape is changing & modify their business / monetization models accordingly.

They should study the hell out of amazon (and maybe even big shopify sellers) to maximize their ecommerce stores. Divert some of their resources into online advertising - preferably for more "passion"-based products (or at least as "passion" as you can get in a big-box setting). Tap into amazon, ebay, etc for commodities. Use all these as forms of customer and lead acquisition.

On the flip side, anyone that can provide a premium (or even just better) experience can be poised to carve out their own nice little share in the market.

That could either be high-end & experience-based shopping.

Or it could even be more mid-range but with much more personal attention. Think a local mom & pop restaurant that doesn't compete with national chains on price, but isn't considered "high end", either. But you love the food and they always remember what you like to drink when you come in.

While the economy is definitely a concern and has affected spending habits, the companies that have the biggest problems are the ones that don't adapt to the changing marketplace. Regardless of what they do or sell, they're ultimately in the business of turning a profit. That means getting people to give them money.

And if money is being spent differently, it's on them to to change with / adapt to how that money is being spent.

Again, I know I said this once already, but that's the problem that plagued so much of the (primarily periodical) publishing industry. The internet & technology drastically changed how content was consumed, yet many outlets & publishers didn't want to change their monetization model(s).

I lived in a small town in Virginia in the early 2000's and you could see the progression of retail shopping. The mall came and killed the stores downtown. Big box stores came and killed the mall. Online shopping came and killed big box. Phone Post 3.0

If the malls close, where the fuck are we going to go when the zombies start eating motherfuckers?