shopping malls

Death of Malls

youtube-Logo-2gc2reddit-logoOff the keyboard of Michael Snyder

Follow us on Twitter @doomstead666
Friend us on Facebook

Published on The Economic Collapse on March 8, 2017

Abandoned Shopping Mall - Photo by Jeff Tank

Discuss this article at the Economics Table inside the Diner

A Third Of All U.S. Shopping Malls Are Projected To Close As ‘Space Available’ Signs Go Up All Over America

If you didn’t know better, you might be tempted to think that “Space Available” was the hottest new retail chain in the entire country.  As you will see below, it is being projected that about a third of all shopping malls in the United States will soon close, and we just recently learned that the number of “distressed retailers” is the highest that it has been since the last recession.  Honestly, I don’t know how anyone can possibly believe that the U.S. economy is in “good shape” after looking at the retail industry.  In my recent article about the ongoing “retail apocalypse“, I discussed the fact that Sears, J.C. Penney and Macy’s have all announced that they are closing dozens of stores in 2017, and you can find a pretty comprehensive list of 19 U.S. retailers that are “on the brink of bankruptcy” right here.  Needless to say, quite a bloodbath is going on out there right now.

But I didn’t realize how truly horrific things were for the retail industry until I came across an article about mall closings on Time Magazine’s website

About one-third of malls in the U.S. will shut their doors in the coming years, retail analyst Jan Kniffen told CNBC Thursday. His prediction comes in the wake of Macy’s reporting its worst consecutive same-store sales decline since the financial crisis.

Macy’s and its fellow retailers in American malls are challenged by an oversupply of retail space as customers migrate toward online shopping, as well as fast fashion retailers like H&M and off-price stores such as T.J. Maxx. As a result, about 400 of the country’s 1,100 enclosed malls will fail in the upcoming years. Of those that remain, he predicts that about 250 will thrive and the rest will continue to struggle.

Can you imagine what this country is going to look like if that actually happens?

Shopping malls all over the United States are literally becoming “ghost towns”, and many that have already closed have stayed empty for years and years.

The process usually starts when a shopping mall starts losing anchor stores.  That is why it is so alarming that Sears, J.C. Penney and Macy’s are planning to shut down so many locations in 2017.  According to one recent report, 310 shopping malls in America are in imminent danger of losing an anchor store

Dozens of malls have closed in the last 10 years, and many more are at risk of shutting down as retailers like Macy’s, JCPenney, and Sears — also known as anchor stores — shutter hundreds of stores to staunch the bleeding from falling sales.

The commercial-real-estate firm CoStar estimates that nearly a quarter of malls in the US, or roughly 310 of the nation’s 1,300 shopping malls, are at high risk of losing an anchor store.

Once the anchor stores start going, traffic falls off dramatically for the other stores and they start leaving too.

Four years ago in “The Beginning Of The End” I warned that empty storefronts would soon litter the national landscape, and now that is precisely what is happening.

Now that the Christmas season is over, some retailers that have been around for decades have suddenly decided that it is time to file for bankruptcy.  Sadly, one of those retailers is HHGregg

HHGregg Inc., the 61-year-old seller of appliances and electronics, is moving closer to Chapter 11 after announcing a store-closing plan, according to people with knowledge of the matter.

The filing may come as soon as next week, said the people, who asked not to be identified because the matter isn’t public. Bloomberg previously reported that HHGregg might file for bankruptcy in March if it couldn’t reach an out-of-court solution.

Another retailer that was once riding high but is now dealing with bankruptcy is BCBG

BCBG, the California-based fashion retailer that had acquired fashion design firm Herve Leger in 1998, and that once had more than 570 boutiques globally, including 175 in the US, and whose cocktail dresses and handbags were shown off by celebrities, filed for bankruptcy on Wednesday.

It is buckling under $459 million of debt. It has 4,800 employees. Layoffs have already started. More layoffs and other cost cuts are planned, according to court documents, cited by Bloomberg. It started closing 120 of its stores in January. It wants to sell itself at a court-supervised auction. If that fails, it wants to negotiate a debt-for-equity swap with junior lenders owed $289 million.

If the U.S. economy was actually doing as well as the stock market says that it should be doing, all of these retail chains would not be closing stores and going bankrupt.

But of course the truth is that the stock market has become completely disconnected from economic reality.

We live at a time when middle class consumers are tapped out.  According to one recent survey, 57 percent of all Americans do not even have enough money in the bank to write a $500 check for an unexpected expense.

And people are falling out of the middle class at a staggering pace.  The number of homeless people in New York City recently set a brand new record high, and city authorities plan to construct 90 new homeless shelters within the next five years.

On the west coast we are also seeing a dramatic rise in homelessness.  The following comes from an article by Dan Lyman

Citizen journalists have captured stunning images and video of homeless encampments that are spiraling out of control in the shadows of Disneyland and Anaheim Stadium in California.

The tent city has recently sprung up along the Santa Ana riverbed, near a busy convergence of three major California highways known as the “Orange Crush,” at the border of Anaheim and Santa Ana, the latter a “sanctuary city.”

Homeless activists estimate that as many as 1,000 people are camped in the region.

You can see some video footage of this homeless encampment on YouTube right here

 

 

 

 

 

 

 

 

 

Incredibly, the Federal Reserve is almost certainly going to raise interest rates at their next meeting even though the U.S. economy is faltering so badly.  That only makes sense if they are trying to make Donald Trump look as bad as possible.

Even though this giant bubble of false economic stability that we are currently enjoying has lasted far longer than it should have, the truth is that nothing has changed about the long-term economic outlook at all.

America is still heading for “economic Armageddon”, and the retail industry is a huge red flag that is warning us that our day of reckoning is approaching more rapidly than many had anticipated.

 

 

 

 

 

 

 

 

 

 

 

 

The Era of Bad Feeling

From the keyboard of James Howard Kunstler
Follow us on Twitter @doomstead666
Friend us on Facebook

stupidtattooartist14
Originally Published on Clusterfuck Nation  September 15, 2014

There are times when events are in charge, not personalities. The unseen forces that hold the affairs of nations and economies in equilibrium dissolve, particles fly out of the many centers, and things heat up toward criticality.

Glance in the rear-view mirror and say goodbye to the Era of Wishful Thinking. This was the time when the USA was inspired by its Master Wish: to be able to keep driving to Wal-Mart forever. Looked at closely, the contemporary idea of Utopia was always a shabby package. On one side, all the pointless driving. For most Americans it was nothing like the TV advertising fantasy of a lone luxury car plying a coastal highway in low, golden light. More like being stuck near the junction of I-55 and I-90 in Chicago at rush hour in July in an overheating Dodge Grand Caravan with three screaming ADD kids whose smart phone batteries just died — plus your fiercely over-filled bladder and no empty Snapple bottle to resort to.

On the other side, there’s the Wal-Mart part: the unbelievable cornucopia of insanely cheap plastic goodies, like, somewhere in the 1990s America became one giant loading dock for nearly free stuff. Wasn’t that fun? Now, everybody has got the full rig, from the flatscreen to the salad shooter, but we’re tired of seeing Kim Kardashian’s booty, and nobody really liked salad, even when you could shoot the stuff into a bowl. The thrill is gone, and so is the paycheck that was your ticket to the orgy. It’s especially gloomy over in the food department, where the boxes of Lucky Charms are suddenly half the weight and twice the price. And that was going to be the family dinner! Must be Nature’s way of telling you it’s time for a new tattoo.

In this weird liminal time since the so-called Crash of 2008 leadership has depended on lies and subterfuges to prop up the illusion of resilience. One biggie is the shale oil revolution, kind of a national parlor trick to wow the multitudes for a long enough moment to convince them that their troubles with the national energy supply are over. Even people paid to think were hosed on this one. Wait until they discover that the shale oil producers have never made a buck producing shale oil, only on the sale of leases and real estate to “greater fools” and creaming off the froth of the complex junk financing deals behind their exertions. Expect that mirage to dissipate in the next 24 months, perhaps sooner if the price of oil keeps sinking toward the sub $90-a-barrel level, where there’s no economically rational reason to bother drilling and fracking.

The lies, frauds, and cons run between the axis of Wall Street and Washington had two fatal consequences with still-lagging effects. 1) They destroyed the capacity for markets to establish the real price of anything — rendering markets useless. 2). They disabled capital formation to the degree that we might not have the money to rebuild an economy to replace the “financialized” matrix of rackets that currently pretends to function. A lot of observers like myself have been waiting for the moment when the fog of pretense lifts and exposes all the broken machinery within. We may be so close now that you can smell it.

Change is in the air, literally, as we wake this still-summer morning with the thermometer so low you wish the furnace was prepped and ready to run. Much is in the air, too, where the news of events near and far provoke swirls of transformation in the disposition of people, nations, and affairs. Who would have guessed a few years ago how nervous Scotland would make the whole Western world? The sharpies at the Pentagon, and the White House, and the CIA may be waiting with indigestion and palpitations for the next ISIS decapitation video, but maybe you have to wonder instead which of five thousand shopping malls across this land will be visited by black-flagged desperados armed with automatic rifles and RPG’s.

Finally, there are the people themselves of this sclerotic polity: too dumb and distracted to help themselves, full of inchoate grievance and resentment, tending ever deeper into darkness. Welcome to the season of the witch in the Era of Bad Feeling. Somewhere “out there” there is a light of virtue waiting for us, but we are a long way from finding our way to it.

 

 

***

James Howard Kunstler is the author of many books including (non-fiction) The Geography of Nowhere, The City in Mind: Notes on the Urban Condition, Home from Nowhere, The Long Emergency, and Too Much Magic: Wishful Thinking, Technology and the Fate of the Nation. His novels include World Made By Hand, The Witch of Hebron, Maggie Darling — A Modern Romance, The Halloween Ball, an Embarrassment of Riches, and many others. He has published three novellas with Water Street Press: Manhattan Gothic, A Christmas Orphan, and The Flight of Mehetabel.

Support the Diner

Search the Diner

Surveys & Podcasts

NEW SURVEY

Renewable Energy

VISIT AND FOLLOW US ON DINER SOUNDCLOUD

" As a daily reader of all of the doomsday blogs, e.g. the Diner, Nature Bats Last, Zerohedge, Scribbler, etc… I must say that I most look forward to your “off the microphone” rants. Your analysis, insights, and conclusions are always logical, well supported, and clearly articulated – a trifecta not frequently achieved."- Joe D

Archives

Global Diners

View Full Diner Stats

Global Population Stats

Enter a Country Name for full Population & Demographic Statistics

Lake Mead Watch

http://si.wsj.net/public/resources/images/NA-BX686_LakeMe_G_20130816175615.jpg

loading

Inside the Diner

 The Federal Communications Commission is warning consumers about a new scam that is hooking consumers with just one word: Yes.According to the FCC, the scam begins as soon as a person answers the phone. A recorded voice or an actual person asks: "Can...

I made a direct  link button on the Homepage of the Diner Forum to take Diner over to Surly's latest Headlines on the paper.li website.  It's at the top of the Newz Channels right below the Reddit link.  I'll make a button for it on the blog homepage a...

Quote from: Surly1 on Today at 03:55:07 AMDoomstead Diner Newshttps://paper.li/Surly01/1490295659#/BREAKING: Devin Nunes Is...

Quote from: RE on Today at 03:51:40 AMQuote from: Surly1 on Today at 02:43:04 AMOh, by all means. Blow it all up, turn block grants back to the states, where republican governors can ladle...

Diner Twitter feed

Knarf’s Knewz

 The Federal Communications Commission is warning [...]

This was a question asked on Quora. Here is an unu [...]

Over the past three days, 112 bodies have been pul [...]

Diner Newz Feeds

  • Surly
  • Agelbert
  • Knarf
  • Golden Oxen
  • Frostbite Falls

I made a direct  link button on the Homepage of th [...]

Quote from: Surly1 on Today at 03:55:07 AMDoomstea [...]

Doomstead Diner Newshttps://paper.li/Surly01/14902 [...]

Quote from: agelbert on March 27, 2017, 04:08:07 P [...]

Agelbert NOTE: This video covers it ALL. Prof Veer [...]

Quote from: azozeo on March 27, 2017, 06:18:01 PMQ [...]

Quote from: agelbert on March 27, 2017, 05:35:40 P [...]

Less Sea Ice now than ANY OTHER TIME IN RECORDED H [...]

 The Federal Communications Commission is warning [...]

This was a question asked on Quora. Here is an unu [...]

Over the past three days, 112 bodies have been pul [...]

Second State In Less Than A Month Challenges Fed, [...]

Health Freedom Victory: How a Small Supplement Com [...]

Quote from: RE on February 23, 2017, 09:25:36 AMQu [...]

Quote from: azozeo on February 23, 2017, 08:46:09 [...]

Quote from: azozeo on Today at 07:49:50 PMI love t [...]

I love the mine car scene, thanks... [...]

http://www.youtube.com/v/4ds9mfUB7DgRE [...]

gotta' include the scene with Ariyan babe.... [...]

Alternate Perspectives

  • Two Ice Floes
  • Jumping Jack Flash
  • From Filmers to Farmers

Standard Issue Incompetence - More Evidence of Imperial Decay (Time for Fight or Flight?) By Cogniti [...]

By Cognitive Dissonance   de·lu·sion·al dəˈlo͞oZH(ə)nəl/ adjective: delusional Characterized by or h [...]

By Cognitive Dissonance Back in the days of sword and sail, warships mounted heavy cannon on their d [...]

This issue of my Patreon Newsletter is open to the public. Please enjoy the article. (I now have a P [...]

By Cognitive Dissonance   I just installed a brand spanking new mailbox here at the homestead, the t [...]

Event Update For 2017-03-26http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-03-25http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-03-24http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-03-23http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-03-22http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

The sounds of the Romanian countryside, unleashed by Fanfare Ciocărlia for twenty years and counting [...]

Fanfare Ciocărlia's lead vocalists (and trumpet players) Radulescu Lazar and Costică "Cima [...]

When I finally made the first steps to end my abstention after more than ten years in the "musi [...]

All digital reproductions are equally made with zeroes and ones, although some zeroes and ones are m [...]

The appearance of the music industry's various formats, plotted along M. King Hubbert's 19 [...]

Daily Doom Photo

man-watching-tv

Sustainability

  • Peak Surfer
  • SUN
  • Transition Voice

Rescuing Los Angeles"How can we use our hard wiring to communicate to the herd that it is time to veer off from a r [...]

Wetiko"When we visited Los Angeles, what we were seeing was not so much a collective neurosis as a co [...]

The Sheer Wall"A system that places monetary value on products and services but places little value on their [...]

Climate Ecoforestry"Want to leap the social barrier to cool living? Behold: a stargate."  In 2008 we asked Fr [...]

Cicero and the Summer of 45"Happiness, Cicero said, is not dependent on things that pleasure the body, but on pleasures of [...]

Off the keyboard of Bob Montgomery Follow us on Twitter @doomstead666 Friend us on Facebook Publishe [...]

Visit SUN on Facebook Here [...]

Click here to visit Sustaining Universal Needs’ YouTube Channel! [...]

There is no excerpt because this is a protected post. [...]

In the echo-sphere of political punditry consensus forms rapidly, gels, and then, in short order…cal [...]

Discussions with figures from Noam Chomsky and Peter Senge to Thich Nhat Hanh and the Dalai Lama off [...]

Lefty Greenies have some laudable ideas. Why is it then that they don't bother to really build [...]

Democracy and politics would be messy business even if all participants were saints. But America doe [...]

A new book argues that, in order to survive climate change and peak oil, the global money economy ne [...]

Top Commentariats

  • Our Finite World
  • Economic Undertow

No need to worry about having children with this approach! [...]

FE, because the owners of the private company have a stronger will to power than all others. [...]

As many as possible should spend as little as possible on essentials, and as few as possible involve [...]

if we'd all followed this doctrine, these problems would never have arisen. I tried it but foun [...]

the police and military will fall in behind whoever pays their wages, then when the wages stop they [...]

I believe the system breaks by 20 dollars a barrel and that is exactly where we are headed. The syst [...]

Steve, you can shut down this blog now: http://www.zerohedge.com/news/2017-03-27/shells-new-permian- [...]

Ivan Illich's Energy and Equity, written in 1973, sounds more relevant every passing day. It is [...]

That looks like old news. But I must say that gas stations around here have been running out of gas [...]

RE Economics

Going Cashless

Off the keyboard of RE Follow us on Twitter @doomstead666...

Simplifying the Final Countdown

Off the keyboard of RE Follow us on Twitter @doomstead666...

Bond Market Collapse and the Banning of Cash

Off the microphone of RE Follow us on Twitter @doomstead666...

Do Central Bankers Recognize there is NO GROWTH?

Discuss this article @ the ECONOMICS TABLE inside the...

Singularity of the Dollar

Off the Keyboard of RE Follow us on Twitter @doomstead666...

Kurrency Kollapse: To Print or Not To Print?

Off the microphone of RE Follow us on Twitter @doomstead666...

SWISSIE CAPITULATION!

Off the microphone of RE Follow us on Twitter @doomstead666...

Of Heat Sinks & Debt Sinks: A Thermodynamic View of Money

Off the keyboard of RE Follow us on Twitter @doomstead666...

Merry Doomy Christmas

Off the keyboard of RE Follow us on Twitter @doomstead666...

Peak Customers: The Final Liquidation Sale

Off the keyboard of RE Follow us on Twitter @doomstead666...

Collapse Fiction

Useful Links

Technical Journals

Climate is one of the single most important factors affecting watershed ecosystems and water resourc [...]

Municipalities are important actors in the field of local climate change adaptation. Stakeholders ne [...]

The Global Climate Model (GCM) run at a coarse spatial resolution cannot be directly used for climat [...]

The present study presents a brief discussion regarding the evolution of meteorology from the sixtee [...]