The mall is dying
The Labor Department announced Friday that retailers cut around 30,000 positions in March, with more than 8,500 physical stores on track to close this year, National Post reports. Urban Outfitters CEO Richard Hayne estimates that the decline is due to the fact that malls in recent years have added too many clothing stores: "This created a bubble, and like housing, that bubble has now burst," Hayne said. "We are seeing the results: Doors shuttering and rents retreating. This trend will continue for the foreseeable future and may even accelerate."
Payless ShoeSource filed for Chapter 11 bankruptcy earlier this month and is set to close 400 stores across the U.S. and Puerto Rico. Rue21, which has about 1,000 teen clothing stores, is also expected to file for bankruptcy in April. Sears, Macy's, and J.C. Penney are also closing hundreds of stores.
To date, about 2,880 stores have closed in 2017, compared to 1,153 stores over the same period in 2016. Christian Buss of the Credit Suisse Group said that by extrapolating from this, there could be a staggering 8,640 store closures in 2017. At the peak of store closures, in 2008, only 6,200 stores shuttered over the course of the year.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"Today, convenience is sitting at home in your underwear on your phone or iPad," Buss said. "The types of trips you'll take to the mall and the number of trips you'll take are going to be different."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
7 beautiful towns to visit in Switzerland during the holidays
The Week Recommends Find bliss in these charming Swiss locales that blend the traditional with the modern
By Catherine Garcia, The Week US Published
-
The Week contest: Werewolf bill
Puzzles and Quizzes
By The Week US Published
-
'This needs to be a bigger deal'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Why are older workers staying on the job?
Today's Big Question And what does it mean for younger workers?
By Joel Mathis, The Week US Published
-
US job growth revised downward
Speed Read The US economy added 818,000 fewer jobs than first reported
By Peter Weber, The Week US Published
-
Are we getting a 'hard landing' after all?
Today's Big Question Signs of economic slowdown raise concerns 'soft landing' declarations were premature
By Joel Mathis, The Week US Published