Why So Many Store Closures? A Look Inside.

While the number of store closure announcements is lower than during the recession, the amount of retail space closing is higher. Apparel and shoe retailers are closing the most number of stores, yet ironically apparel is also in the top three of aggressive expansion stores alongside auto parts and dollar stores. Only a modest amount of apparel sales have shifted online and apparel shoppers are shifting from mid-priced clothing stores and department stores in favor of discounters. Why is that? Well, demographics are changing and consumer’s tastes are shifting. What we’ve found is consumers want experiences, convenience and value. The stores that fulfill those functions will stay open; those that don’t will close.