Posted by: coastcontact | August 4, 2016

Goodbye to Chain Department Stores

Macy's North Hollywood Closing 8-4-2016The Sears near my home was in a shopping center that includes many of the major department store chains including Macy’s, Nordstrom’s, Target, and Neiman Marcus. The store is now sealed off with metal siding and block walls.

The impact of Amazon and other on-line sales companies is really starting to take its toll.   Amazon, Wal-Mart Lead Top 25 E-commerce Retail List. Total annual retail e-commerce sales are $201 billion, according to the 180 companies tracked by eMarketer. For the top 25 retailers, total annual e-commerce sales come in at $159 billion, with Amazon Inc., Wal-Mart Stores Inc. and Apple Inc. taking the top three spots. According to eMarketer, Amazon’s e-commerce sales are $79.3 billion while Wal-Mart has $13.5 billion and Apple totals $12 billion. After Walmart is Apple, Staples, and Macy’s.   More than 50% of Williams-Sonoma’s sales are done on-line.

So while Macy’s may be seeing an increase in-line sales they are closing or have closed at least 40 stores this year. Four in the Los Angeles area include their Century City store (that is next to Beverly Hills). This list does not include all of the targeted stores as they just today announced the closing of a North Hollywood store that was opened 61 years ago by May Company.

Fortune magazine reports that 78 Sears and Kmart stores are also closing.

There are many other chains of specialty stores from women’s fashions to sporting goods and sportswear that are also facing declining sales.

What will happen to all the malls that have been built across the nation? One high end mall in Woodland Hills California, called the Promenade, is now mostly deserted and rumor has it that the buildings will be torn down and apartment houses will replace the shopping. Westfield is the owner and has not revealed its plans.

Does this also means more lost jobs? Well, no.  New distribution centers are being erected by the on-line retailers.

Nothing is forever!

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