There Will Be More Retail Stores Opening Than Closing In 2017by Richard Kestenbaum
You read the headline right, there are more retail stores opening this year than there are stores closing. You may say, but when I walk down almost any shopping street, I see so many vacancies where there were previously tenants, so… how can there be more openings than closings?
A new report out by IHL Group answers the question. The kind of store that’s opening now is different. If you look at the chart below, you’ll see that the most significant closings are due primarily to the Radio Shack bankruptcy and the closure of a lot of fashion stores. The fashion-related vacancies you’re seeing are dominating the list of store closures. You could blame technology for that, but that wouldn’t be entirely fair. It’s more fair to say that technology accelerated the decline of retailers who have not been in touch with what their consumers wanted as much as their competitors. Technology helps consumers see more of what’s available and that makes the comparison between brands so much more stark and apparent.