American Retailers Closing Store After Store

List of some American retailers

                                             American Retailers Closing Store After Store

It looks like the American retail industry is looking worse and worse with each closing store. This week, numerous stores, both from the luxurious and affordable spectrums, will be closing their doors for good. This year, the frequency with which retail stores are closing all over the country is at a record pace and the future does not look good.

Filing for bankruptcy

One of the first examples is the Payless Inc. shoe chain which, until now, seemed to have a store everywhere you went. It actually filed for bankruptcy and made the official announcement that it will be closing hundreds of stores in the shortest time. Luxury stores did not escape this problem either. Ralph Lauren Corp. announced that it would close its Polo store, located on the Fifth Avenue. Times are changing, and it seems like this luxurious, but old-fashioned brand does not attract the modern buyers anymore.

Retailer Rue21 Inc., which specializes in teen apparel, might be the next chain to close. The 1,000-store chain is reportedly getting ready to also file for bankruptcy this month. It is interesting to note that, just a few years ago, private equity firm Apax Partners bought it for about $1 billion. However, analysts are saying that the only reason for the failure of these stores is the continuously changing industry. Considering this, it is very difficult for malls and stores to completely reinvent themselves and start anew. So, many of them simply fall.

Malls and jobs are suffering

This recent retailer disaster is making the situation difficult for malls too. They are struggling to fill the vacant spots which those retailers left. Moreover, the nightmare might be just now beginning. Analysts are expecting about 10 per cent of United States retail space to be closed or transformed into something else in the coming years.

This situation is also affecting jobs. The Labor Department released some figures on Friday and, according to those, about 30,000 were cut in March alone. According to Urban Outfitters Chief Executive Officer Richard Hayne, this problem is happening because there are too many stores which sell apparel. So, the market became oversaturated and naturally, some retailers have to pay the price. Macy’s Inc. and J.C. Penney Co. are two other big retailers which will be closing stores.

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