- Dec 29, 2015
- Reaction score
- Olympia Wa
- Political Leaning
http://www.cnbc.com/2016/05/12/1-in-3-american-malls-are-doomed-retail-consultant-jan-kniffen.htmlAbout one-third of American malls are not long for this world, retail analyst Jan Kniffen said Thursday.
The CEO of J. Rogers Kniffen Worldwide Enterprises spoke after Macy's reported its worst sequential same-store sales decline since the financial crisis. Macy's and other retailers got slammed by a warm winter and cool spring, as well as the continued migration of millennials to fast fashion and off-price stores, Kniffen said.
"On an apples-to-apples basis, we have twice as much per-capita retail space as any other place in the world. The U.K. is second. They're half of what we are. So, yes, we are the most over-stored place in the world," he told CNBC's "Squawk Box."
With the U.S. having an estimated 48 square feet of retail space per citizen, the footprint is poised to decline "pretty fast," Kniffen said.
In his view, about 400 of America's 1,100 enclosed malls will fail in the coming years. Of the survivors, about 250 will thrive and the rest will struggle. Likewise, Macy's probably needs 500 of its roughly 800 existing stores, he said.
Almost all of the main retailers are reporting horrible sales numbers, JCP today being just the latest. JCP, Sears, Kmart are all going away, Macy's is going to shrink big time, there is just no way we avoid a massive shrinkage of brick and mortar stores. Lots of controversy about why the numbers are so bad, but my gut instinct is that increased housing and Obamacare healthcare costs are sucking people dry, people simply have little money to spend, and what they do have they want to spend on experiences rather than accumulating crap. However I do note that a increasing number of experts are saying that retailers have not modernized the shopping experience inline with customer expectations, that this failure to perform has lead to a boycott of the entire sector in favor of Amazon.
Oh well, I hate shopping in general and mall in particular. It will be sad to see all of those malls dead, all of those people out of work, but it is going to happen anyways.