retail news in context, analysis with attitude

USA Today has a story about how "a trip to the mall in 2018 might look very different than one right now," largely because of the mall tenants that have either bitten the dust or are dealing with major cuts in their store fleets. "Some chains such as The Limited and Sports Authority have already gone to the big mall in the sky, while major anchor chains Sears and Macy's have laid out plans to close significant numbers of stores," the story says.

Some examples:

• "Sears and K-mart, both owned by Sears Holdings, have been on a slow, sad death march, closing stores steadily in the hopes that somehow less will eventually equal more. In January, plans were made public to close another 150 stores -108 K-mart locations and 42 Sears stores ... Things have become so dire for Sears Holdings that selling off inventory and store fixtures to generate cash makes more sense than trying to fix stores that are relatively close to break-even."

• "After filing for Chapter 11 bankruptcy protection in May, Aéropostale received $160 million in debtor-in-possession financing provided by Crystal Financial, which, "combined with operating cash flow, will allow Aéropostale to meet its go-forward financial commitments," according to a press release. The company has already closed 113 locations in the United States, as well as all 41 stores in Canada. That is likely only the tip of the iceberg for the chain, whose survival is very much in doubt."
KC's View:
And the list goes on and on. I try to avoid malls for the most part, but when I go, I have to admit that I look around at many of the stores and wonder how they stay in business.