Big retail chains are announcing closures, downsizing and bankruptcy. This will mean more layoffs. For some recent updates see: Retail Detail: A Slew of Companies Filing for Chapter 11. Here is a direct video link.
Analysts are suggesting “no compelling fashion trend” is to blame?? How about mammoth over supply in retail following the credit bubble build-out, consumers with little savings, no appetite for more debt, an aging population that buys less, and poor income growth–both in workers, and in retirees who have less spending power thanks to zero-bound interest rates.
Imploding retail is a secular theme with staying power, as the bloated sector right-sizes to balance with available demand. Retail-centric REITs and developers are in for some tough times too. As are the income-seeking people who have purchased their shares for ‘conservative’ cash flow…yikes.
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