AS go the malls, so goes middle-class America. And now, there go the malls:
Since last fall, eight mostly midsize chains — as diverse as the furniture store Levitz and the electronics seller Sharper Image — have filed for bankruptcy protection as they staggered under mounting debt and declining sales.
But the troubles are quickly spreading to bigger national companies, like Linens ‘n Things, the bedding and furniture retailer with 500 stores in 47 states. It may file for bankruptcy as early as this week, according to people briefed on the matter.
Even retailers that can avoid bankruptcy are shutting down stores to preserve cash through what could be a long economic downturn. Over the next year, Foot Locker said it would close 140 stores, Ann Taylor will start to shutter 117, and the jeweler Zales will close 100.
The surging cost of necessities has led to a national belt-tightening among consumers. Figures released on Monday showed that spending on food and gasoline is crowding out other purchases, leaving people with less to spend on furniture, clothing and electronics. Consequently, chains specializing in those goods are proving vulnerable.
I don’t usually go to the mall, but I did this past weekend. I was shocked but thought I might have been over sensitive. I was first struck by how close to I could park to the building on a Saturday afternoon. Inside many store fronts were unoccupied and the fewest people shopping I’ve seen (except for early weekday mornings). Wilson’s (a leather store that’s been there for over a decade) closing shop with over a hundred more closing nationwide, I was told. But the most striking thing to me was the sparse floor stock of those stores still open. Every store showing great expanses of open floor space, like they were in the last days of a clearance sale.
Loss of retailers is going to be a big deal for local governments.
But they still keep bulldozing open land for more new malls and warehouses. Then they wonder why we have so much more flooding than we used to.
The restaurants are hurting too. I was at a local pizza place recently and the owner was complaining that a couple months ago flour was $8 and now flour costs $32.
(Is that per sack? Not sure)
All I know is, I’m stockpiling pasta while I can still afford it.
I’m loading up on dried beans.
we have a garden out back for tomatoes, beans, greens…
I collect clothing donations for the homeless from a women’s clothing store at King of Prussia mall. the manager told me Talbots (the corp that owns them) is closing a bunch of stores, inlcuding several of the lower performing women’s clothing stores.
There was a 60% off sale when I dropped by to pick up a donation last night. Things are getting ugly.
I am stockpiling regular light bulbs- can’t stand the idea of having to use floroscent lighting at home.