It seems like there has been a lot of reporting this past year of major retail brands closing tens of stores all over the US. Macy’s announced the closing of over 100 stores earlier this summer bringing their 2007 high of 868 stores down to 666.
Another major brand that has been announcing cutbacks and struggles is Nordstrom, a popular chain that has been shifting their focus to Rack discount and eCommerce. Even Wal Mart hasn’t been spared, announcing the closing of and 269 stores.
More recently, Abercrombie & Fitch have also announced their plans to change things up, in part to a drop in sales for a staggering fourteen quarters in a row.
So what’s going on? What’s causing all of this?
It boils down to one thing: consumer needs.
Consumers are turning to discount chains for most of their shopping. In fact, it’s been this way since the recession when consumers started to gravitate to discount options.
Recently the Chicago Tribune reported that bargain stores are leading the top ten list in fastest growing retail chains. Taking the second, fourth, and fifth spots in the list are Dollar General, Family Dollar, and Dollar Tree.
Dollar General, will be opening 900 more stores this year and another 1000 in 2017 while Family Dollar will increase their retail space by 4.3 million square feet. Not to be left out, Dollar Tree is adding 3.2 million square feet of retail space.
With the expansion of these discount stores, big box chains are going to have a struggle keeping up, so it’ll be interesting to see what happens throughout the rest of the year…