Have you taken a look at your local mall in the last few weeks? I haven't visited in a while, as I do most of my shopping at the farmer's market and the local ethnic stores. I live in one of the worst parts of Los Angeles (appeals to my frugal nature) and I do my shopping with local vendors.
I visited the strip mall near my place. I don't visit it often, as it's mostly small retailers for things I don't need. The mall was nearly empty. With the notable exception the anchor stores Starbucks, a CVS, Lowe's, and a IHOP, the entire strip mall is empty. From what I can see, it looks like around 20 retail spaces are open and for rent.
Today, I went to SCALE, the local Linux conference, which also appeals to my frugal nature. I drove into more upscale parts of LA around the airport. It was amazing, outside of the businesses directly supporting the airport, retailers are shutting down their stores.
I'd like to know how the stores are doing around your area. From my admittedly short drive through the Long Beach area, it appears that 10% of anchor stores and 25% of the small retailers are shutdown or shutting down.
I got a distinct late 70's feeling from the view...
Subscribe to:
Post Comments (Atom)
8 comments:
hi john tony here (tonjg). It's not exactly your neighbourhood but here in the UK things seem alright. There's a lot of negative talk in the air but in reality the shops are selling, traffic is moving, my phone is still ringing. I've heard the talk of a delayed reaction for those outside the US but nothing bad has happened here. This is what I don't get about all the talk of a crash. Some swore we would see a crash before the end of 2007 but here we are in February 2008 and nuffin's happened.
i can confirm that, here in the bay area, there's been an increase in strip-mall businesses closing shop... comp usa, barnes and noble, shoe pavillion, sporting goods stores, etc. common sight to see folks payed by the hour standing on busy intersections advertising liquidation sales...
This is normal. Stores will close. Retailers will compress their store numbers as the economy slows. Especially if they were expanding at too rapid a rate. However, we have yet to see the trailing numbers which are unemployment. Expect that to start showing up in the next 6-8 wks.
John,
I live in eastern North Carolina. It is a tale of 2 worlds here. Eastern NC has been depressed(except for the coast) since the textiles left. Tobacco is now on the way out with only pigs and turkeys to replace it. In some little towns, if you told them a depression was coming they would laugh and say the last one hasn't left yet.
Raleigh, the capital and points west are doing better than probably any area of the country right now. Research Triangle Park makes the drugs that are fed to the masses. Some commercial vacancies but still a bustling business.
Some early warning signs are appearing in housing and commercial real estate, but nothing like what is coming.
I have also noted a slight drop in the numbers at several nightclubs I perform in.
It's hard to explain to people what could very well happen when they don't see evidence directly in front of them in their daily lives.
I think I will start wearing a tin foil hat and a shirt that says
"Ask me about my Tin Foil Hat!"
John,
I am in the rocky mountain region.
so called 2% unemployement.
The investors are still building and the retailers are still coming.
I will be in L.A next week, I look forward to a glimpse of the 70's and what is coming.
Enjoy your blog!
Retailers Taking Their Medicine and Turning Cautious Over Growth
Retail Industry Experts Say Closing Stores and Pulling Back is the Right Move in this Market
The past couple months in retail real estate have been laden with more store closing announcements and news of retailers slowing expansion plans than we've seen in a long time. However, two retail real estate strategy executives, a Wall Street retail analyst and a leading Texas retail real estate broker, confide that closing stores and turning cautious over expansion plans may be the best thing for retailers to be doing right now.
Announcements over the last couple months include Movie Gallery closing another 400 stores; Charming Shoppes closing 150 stores and cutting expansion plans by 50%; Starbucks closing 100 stores and slowing expansion plans by 34%; Ann Taylor shuttering 117 stores and slowing store growth; Boston Market evaluating its real estate opportunities; Buffet Holdings sorting out its underperformers; Sprint Nextel closing 125 stores and 4,000 distribution points; Cost Plus World Market closing 18 stores; Liz Claiborne closing 54 Sigrid Olsen stores; New York & Company axing the Jasmine Sola brand and its 32 stores; Ethan Allen closing 12 stores; PacSun closing all of its 173 demo stores; and Talbots exiting its kids and men's lines through closure of 78 stores.
Others include Rite Aid exiting Nevada by closing 28 stores; Macy's closing nine stores; Krispy Kreme expecting many franchisees to close stores; Kirkland's Home likely closing 130 stores; CompUSA's remaining 103 stores being disposed of; Rent-A-Center closing 280 stores; Sofa Express closing 44 stores in bankruptcy; 84 Lumber closing 12 stores; Home Depot closings some call centers; Levitz Furniture disposing of 76 stores in bankruptcy; Pep Boys closing 31 stores; Lifetime Brands closing 30 stores; Big A Drugs liquidating its 21 stores; and more.
Here in my part of Florida, the malls are fairly empty,most streets have at least one vacant house, for rent and sale signs abound; Many swinging in the wind, dangling by one screw. Even minimum wage, part time work is a challenge to secure. Want a 2 bedroom fixer upper for $16,900? Easy terms!
I live in Brandon, FL which is basically the Tampa area. I've been to the Brandon mall recently and have noticed a few stores closing down. One was a KB toy store and I forget the others. There were not a bunch but it was definitely a noticable and I wasn't even looking to see if any had closed. 2 furniture stores, one in Tam pa, and one in Brandon are closing the doors. There are a few vacant offices in some of the strip malls around here. Again, not a lot but definitely noticable.
Post a Comment