Department store closures have long dominated retail apocalypse
rhetoric.
While they do not necessarily spell the downfall of retail, struggling department stores have led mall closures since
the turn of the decade.
From 2011 through 2016, Sears Holdings Corp (OTC: SHLDQ) has led mall store closures, with 130, Chain Store Age
reported, citing ICSC numbers. J C Penney Company Inc (NYSE: JCP) and Macy’s (NYSE: M) have closed 102 and 89 stores in the same time frame, respectively.
Among the top 10 largest declines in mall store numbers, seven were department stores, including Dillard’s,
Inc. (NYSE: DDS), Belk, Kohl’s
Corporation (NYSE: KSS) and Burlington Stores
Inc (NYSE: BURL).
Company-owned stores have seen the biggest increase in mall openings in this same time frame, with Under Armour
Inc (NYSE: UAA) leading the way. The company has
pursued aggressive growth in its branded stores and opened 39 of them from 2011-2016.
Fast fashion retailer H&M saw the second-biggest increase in mall openings with 30 stores.
Michael Kors Holdings Ltd (NYSE: KORS),
American Eagle Outfitters (NYSE: AEO),
Dicks Sporting Goods Inc (NYSE: DKS),
Nike Inc (NYSE: NKE), Adidas AG
(ADR) (OTC: ADDYY) and Armani outlet rounded out the
top 10.
Storch
Advisors CEO Gerald Storch said on CNBC Friday that retailers offering truly differentiated products will win, naming
Nike, Lululemon Athletica inc. (NASDAQ: LULU), Walmart Inc (NYSE: WMT) and Amazon.com, Inc. (NASDAQ: AMZN) as examples.
"The losers are those who sell undifferentiated
product that you get everywhere. In the internet era, their prices will come crashing down. You see company's like Sears.
Penney's in is big trouble — this is their last big year. If it doesn't work, it's never going to work," Storch said.
Related Links:
Cowen:
Kohl's, Target, Tiffany Are Top Holiday Retail Picks
Wedbush
Upgrades Nordstrom, Says 2018 An 'Inflection Point For Profitable Growth'
Photo by Dustin Blitchok.
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.