(CBS) — Retail stores seem to be going the way of land lines: near extinction. All across the country, stores are going dark.
What is surprising is it’s not just Internet shopping wiping out brick-and-mortar stores, CBS 2’s Dana Kozlov reports.
If you don’t see it, you hear about it: stores closing. Hundreds of them, and analysts say there will be more to come.
From hh greg to Lane Bryant and Staples to JC Penny, dozens of retailers are repositioning for the future, or just going out of business. Some malls are now on a potential casualty list. Even popular retailers like Sports Authority couldn’t make it work.
Over-saturation is to blame, says Morningstar’s Bridget Weishaar, who notes there are not enough shoppers to physically fill all the stores.
Experts point to other factors, like decreasing demand for clothing and, of course, the rise of on-line shopping, with companies like Amazon making it more convenient than ever. But does this mean the slow but inevitable death of walk-in retailers?
Weishaar doesn’t think so. “I do think you’re going to see some malls go under,” she says. “There’s just way too much real estate out there. But for what remains, there’s always going to be a need for stores — to see it, to touch it.”
So, what is doing well? Discount retailers, along the lines of Nordstrom Rack. Despite the demand dip, those that are out buying clothes, want the best deal.