Say Goodbye to Shopping Malls
America, no the entire world, is experiencing a dramatic change in the retail industry. It is very apparent in the United States. Americans are not shopping at malls as much as they have in past years. Macy’s department stores is planning to close 14 of their 800 locations in 2015. That is a company that has been a success. JC Penney plans another 40 closings in 2015. Wet Seal has announced it is closing 2/3 of their stores in 2015.
BloombergBusinessweek says “While malls stumble, mobile shopping is expected to grow 800% through 2015.”
In 2014 a long list of stores were closed. That includes 339 Sears, 170 Staples, 150 Office Depot, and 33 JC Penney. Not the only reason but a major cause has been on line sales. Many of the stores themselves have opened sales web sites.
Amazon has played a prominent role in the structural shift away from brick-and-mortar retail, and it may lay waste to several other retailers in the years to come. Without the cost burden of physical stores, Amazon can price below traditional rivals and drive recurring traffic online. But it is not the only on line business that has changed the retail climate. eBay, Etsy, are just the two other on-line businesses that I know. Want to buy anything from Hewlett Packard? They sell all of their computers, printers, and supplies on line. Meanwhile Alibaba (the Amazon knockoff) is booming in China.
While I still shop at Costco and they have seen their sales increase, they too sell many of their products on line.
Sorry old timers, this is all part of the 21st century.