US Retail Industry Ushers In A New Round Of Closing Shop Trend

The retail industry in the United States is ushering in a new round of large-scale development.

According to the data provided by CoStar group to reporters, more than 10% or 1 billion square feet of retail space in the United States may need to be closed.

It is noteworthy that clothing has become the biggest disaster area.

Last month, Richard Hayne, chief executive of Urban Outfitters, commented frankly that in recent years there have been too many shops in shopping centers, and too many stores are selling the same things.

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"This creates bubbles, just like the housing market, which has burst," he said.

"What we are seeing now is the result: shops are closed and rents are down.

This trend will continue in the foreseeable future and may even deteriorate.

"Last year, Urban Outfitters continued to close shop, and thought that clothing retail is not as good as cooking and selling home.

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And the electricity supplier has a strong impact on us youth clothing brands.

Since last year, at least eight teenage clothing retailers have filed for bankruptcy under brutal competition and sales stagnation, including American Apparel, Aeropostale Inc, Pacific Sunwear of California Inc, Quiksilver, Sports Authority,

In the United States, clothing business is becoming more and more difficult. American Apparel has a market value of more than 500 million dollars and is now sold for only 88 million dollars.

The latest is Payless, an American shoe retail chain that once existed everywhere, filed for bankruptcy protection in the US court last Tuesday to restructure its North American business and Hongkong based logistics and supply chain businesses. The company will close nearly 400 branches in the United States and other places.

And teenage clothing retailer Rue21 may be next.

The store, which has about 1000 stores, is expected to file for bankruptcy early this month, people familiar with the matter said.

Just a few years ago, it was sold to private Holdings Company Apax Partners for about $one billion.

The battered American Apparel Retailing industry is not limited to low-end brands, but also high-end brands.

Luxury brand Ralph Lauren announced last Tuesday that it would close the flagship store in Fifth Avenue in New York and lay down redundant employees.

According to the world clothing and shoe net, the lease of New York flagship store, which is about to close in Ralph Lauren, began in 2013. The lease period is 15 years, with a total area of 38 thousand square feet. The rent is only $25 million a year.

Stephen Stephanou, partner of Crown Realty Services, an investment agency, said Ralph Lauren's high-profile store is signaling to other US Department stores and retailers, which means that a new round of shop closes is about to begin.

In the group's 2016 fiscal year report, Ralph Lauren closed 43 stores last year.

In addition, due to the continued downturn in performance, high-end apparel department store Neiman Marcus group performance is disappointing, the second quarter net loss from the previous year's $7 million 900 thousand to 20 times to 171 million U.S. dollars, the company confirmed that it will seek to sell, and the group's valuation is also continuing to shrink, some investors revealed that Neiman Marcus's acquisition valuation may be only 60% of that year.

Surprisingly, the American designer brand BCBG Max Azria also filed bankruptcy applications to close all the physical shops in the United States.

The annual sales volume has been reduced to $615 million, due to the negative impact of rapid changes in consumer demand in recent years, high rent and sluggish sales of wholesale channels.

"The industry is still looking for a breakthrough," said Noel Herbert, a Bloomberg industry research analyst.

"I don't know how many shopping malls can be born again."

The rapid collapse of a large number of retailers has led to a large number of vacant shops in shopping centres, and the pain may just begin.

The direct result of the disaster is that the sluggish retail industry hurts employment.

According to the data released by the labor department on Friday, about 30 thousand people were laid off in the retail sector in March, which is almost the same as in February, and the worst performance in two months since 2009.

Christian booth, an analyst at Credit Suisse Group, said that the closing rate of stores in the United States so far this year has exceeded that of the same period in 2008, the last time the United States was in recession.

In a report, he said that the number of shops closed this year was about 2880, compared with 1153 in 2016.

Accordingly, 8640 stores may be closed in 2017.

This will be higher than the record set of about 6200 in 2008.

There are also worries about the department store industry with a large number of stores.

In the context of the severe situation in the department store industry, according to industry analysis, Sears holdings, Messi stores and J.C.Penney three department stores will add up to more than 500 planned closure.

In order to reduce costs, some brands are planning to pform into pure e-commerce brands.

Kenneth Cole Productions said last November that it would close almost all its stores.

Last month, people familiar with the matter revealed that Bebe Stores Inc, a women's clothing chain, was also planning to take similar measures.

However, they must face a cruel reality, that is, it is difficult to compete with the online market hegemony Amazon.

According to the world clothing and shoe net, Amazon is dominating the online sales clothing business in the United States, and more and more millennials are buying clothes in Amazon.

In 2016, Amazon compared to other apparel retailers, the 18-34 generation of American consumers contributed the most clothing sales. In all apparel online sales, Amazon accounted for nearly 17% of the total sales, more than two times the sales of second Nordstrom market share.

Although it is leading the way, Amazon has been committed to extending its business. The company also introduces and continues to launch its own clothing brand.

According to the world clothing and shoe net, Amazon accounted for 53% of last year's growth in e-commerce sales, and only 47% of the rest were shared by all other businesses.

Amazon is already a serious threat to US retailers.

Up to now, Amazon has a market capitalization of US $427 billion, which has surpassed the total of eight major retailers in the United States. The eight traditional physical retailers are best buy, Messi general merchandise, Target, JCPenney, Nordstrom, WAL-MART, rolls and Sears.

The purpose and frequency of American consumers going to shopping centers will be very different from before.

"Nowadays, the general situation of the whole fashion retailing industry is that consumers gradually lose interest in shopping for physical stores, whether in traditional department stores or other luxury stores."

Karen Katz, chief executive officer of Neiman Marcus group, has said.

More interesting reports, please pay attention to the world clothing shoes and hats net.