Opinion

More Department Store Closures Expected

A US reputable real-estate research company, Green Street Advisors, has indicated that department stores have to close hundreds of locations if they want to regain productivity they had a decade ago.  They believe one fifth of department stores should be closed (about 800) of all anchor space in US malls.  Retailers such as Macy’s, J.C. Penny and Sears have already closed hundreds of stores in recent years.

Department stores are losing sales to discount retailers and online merchants like Amazon.  The research also indicates that many retailers are making less money selling goods online than they do in their physical stores and discounters are growing with the ease of online price comparisons,