In a report by Bloomberg news (www.bloomberg.com), America, although showing optimistic growth with its stock exchanges hitting new highs and the job market buoyant, is suffering from what is being referred to at the ‘retail apocalypse’.
This is borne out by statistics that show that, although retailers announced more than 3 000 store openings in the first three quarters of this year, another 6 800 are closing their doors and many filing for bankruptcy. Although part of the reason can be attributed to on-line shopping and the changing consumer trends, experts believe that many retail chains are overburdened with debt and are also battling against America’s ‘over-stored suburbs’ and proliferation of shopping malls.
The long-term impact of so many stores closing is concerning as it means job losses and the domino effect that results from that. The bankruptcy of retail giants like Toys ‘R’ Us Inc has many analysts worried that this is just the beginning of what could be another ‘bubble’ about to burst.