Record number of retail stores have not made it to Black Friday here in 2017
One of the more interesting byproducts of the Housing Bubble that took place during the first decade of this century was the inordinate number of businesses that sprung up in and around new communities.¬† And while using the tenor of continual growth as the catalyst to keep pushing up their stock prices between 2002 and 2008, many of these corporations would end up shuttering store locations when the foreclosure monster hit, and the economy plunged into the Great Recession.
Krispy Kreme broke ground Monday on a store in Homewood, the first of eight planned doughnut shops coming to the area in the next few years.
The store, at 17815 S. Halsted St., is expected to open in November with the brand’s signature hot glazed doughnuts.¬†All but one of the brand’s area stores closed during the Great Recession. There’s a single corporate-run location in Elk Grove Village, which mostly serves retail clients like Wal-Mart. ‚Äď¬†Chicago Tribune
Krispy Kreme was not the only franchise to lose a major portion of their business locations as a record 6100 retail stores would close in 2008.
It is perhaps ironic that nine years later the record achieved in 2008 would be shattered despite the fact that stock market values are almost double what they were leading into the Financial Crisis, and housing prices are greater now than at the height of the Housing Bubble.¬† But that is indeed the case as in the first 10 months of 2017 there have been more closures of retail stores than at the start of the Great Recession and subsequent Fed bailout, with most not even able to last until the Black Friday shopping season to try to stave off insolvency for just one more year.
So far in 2017, over 6,700 stores have been shut down and we still have nearly two months to go!¬† The following comes from¬†CNN‚Ä¶
More store closings have been announced in 2017 than any other year on record.
Since January 1, retailers have announced plans to shutter more than 6,700 stores in the U.S., according to Fung Global Retail & Technology, a retail think tank.
That beats the previous all-time high of 6,163 store closings, which hit in 2008 amid the financial meltdown, according to Credit Suisse (CS).
Just within the last week, we have learned that Sears is closing down another 60 stores, and Walgreens announced that it intends to close approximately 600 locations.
Sadly, this trend is only expected to continue as the U.S. has not ever truly recovered from its biggest recession since the Great Depression, and nearly 80% of U.S. households are barely surviving paycheck to paycheck.¬† And what this bodes for retail during their most important time of the year is still up in the air, but if all factors cited are accurate, then this year’s Christmas shopping season will being about more red than black, and the number of store closures could easily hit the 7000 mark.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.