A giant wave of store closures is about to hit the US

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Offline windyacres

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A giant wave of store closures is about to hit the US
« on: January 02, 2017, 01:00:47 AM »
  A giant wave of store closures is about to hit the US


    Hayley Peterson





Rolling Acres Mall in Akron, Ohio. Nicholas Eckhart

Retailers are bracing for a fresh wave of store closures at the start of the new year.
The industry is heading into 2017 with a glut of store space as shopping continues to shift online and foot traffic to malls declines, according to analysts.

"I f you are weaker player, it's going to be a very tough 2017 for you, " said RJ Hottovy, a consumer equity strategist for Morningstar.
He said he's expecting a number of retailers to file for bankruptcy next year, in addition to mass store closures.

Nearly every major department store, including Macy's, Kohl's, Walmart, and Sears, have collectively closed hundreds of stores over the last couple years to try and stem losses from unprofitable stores and the rise of ecommerce.

But the closures are far from over.

Macy's has already said that it's planning to close 100 stores, or about 15% of its fleet, in 2017. Sears is shuttering at least 30 Sears and Kmart stores by April, and additional closures are expected to be announced soon. CVS also said this month that it's planning to shut down 70 locations.

Mall stores like Aeropostale, which filed for bankruptcy in May, American Eagle, Chicos, Finish Line, Men's Wearhouse, and The Children's Place are also in the midst of multi-year plans to close stores.

Many more announcements like these are expected in the coming months.
The start of the year is a popular time to announce store closures. Nearly half of annual store closings announced since 2010 have occurred in the first quarter, CNBC reports.

In addition to closing stores, retailers are also looking to shrink their existing locations.
"As leases come up, you're going to see a gradual rotation into smaller-footprint stores," Hottovy said.

Despite recent closures, the US is still oversaturated with stores.
The US has 23.5 square feet of retail space per person, compared with 16.4 square feet in Canada and 11.1 square feet in Australia — the next two countries with the highest retail space per capita, according to a Morningstar report from October.

"Across retail overall the US has too much space and too many shops," said Neil Saunders, CEO of the retail consulting firm Conlumino. "As shopping patterns have changed, some of those shops are also in the wrong place and are of the wrong size or configuration."

As stores continue to close, many shopping malls will be forced to shut down as well.
When an anchor store like Sears or Macy's closes, it often triggers a "downward spiral in performance" for shopping malls, Morningstar analysts wrote in the report from October.

The malls don't only lose the income and shopper traffic from that store's business. The closure often triggers "co-tenancy clauses" that allow the remaining mall tenants to exercise their right to terminate their leases or renegotiate the terms, typically with a period of lower rents, until another retailer moves into the vacant anchor space.

To reduce losses, malls must quickly find a replacement tenant for the massive retail space that the anchor store occupied , which is nearly impossible — especially in malls that are already financially strapped — when every major department store is reducing its retail footprint.

That can have "grave" consequences for shopping malls, especially in markets where it's harder to transform vacant mall space into non-retail space like apartments, according to the analysts.

The Morningstar report supports another recent analysis from Credit Suisse that said about 200 shopping malls are at risk of shutting down if Sears continues to close stores.


http://www.businessinsider.com/stores-closing-macys-kohls-walmart-sears-2016-12

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Offline Geolibertarian

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Re: A giant wave of store closures is about to hit the US
« Reply #1 on: January 02, 2017, 06:09:55 AM »
If you have an anti-Georgist tax system that, as such, literally penalizes small business owners and the wage-earners they employ the more they put land to productive use while simultaneously rewarding rent-seeking speculators the more they hold land out of use, then regardless of what your immigration policy is, you inevitably wind up with (surprise!) millions of abandoned properties in towns and cities all across the nation:





And if reactionary politicians who've been brainwashed (to one extent or another) by Austrian School propaganda have their way, publicly-generated land values will be exempt from taxation altogether, thereby making our tax system even more anti-Georgist than it already is and, consequently, the plague of vacant homes and boarded-up businesses even worse than it already is.

Once again, Henry George was right and both his left-wing and right-wing critics were (and remain) wrong.




http://forum.prisonplanet.com/index.php?topic=160421.0 (Land Value Taxation: Rebuttals to Common Objections)
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline donnay

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Re: A giant wave of store closures is about to hit the US
« Reply #2 on: January 02, 2017, 12:41:29 PM »
Make way for the entrepreneurs!
"Logic is an enemy and truth is a menace." ~ Rod Serling
"Cops today are nothing but an armed tax collector" ~ Frank Serpico
"To be normal, to drink Coca-Cola and eat Kentucky Fried Chicken is to be in a conspiracy against yourself."
"People that don't want to make waves sit in stagnant waters."

Offline egypt

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Re: A giant wave of store closures is about to hit the US
« Reply #3 on: January 02, 2017, 12:59:00 PM »

Rather than see so many wonderful homes deteriorate, making a blight in our neighborhoods -- it would be wonderful to see the homeless have a place to live!  They deserve it.  So many were illegally relegated to live deplorably in the streets by globalists.

It would be the same with empty malls and businesses.  Setting up to grow food inside these would be a good start.  Wonderfully growing plants would be appealing and beautiful.

love, e

Offline windyacres

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Re: A giant wave of store closures is about to hit the US
« Reply #4 on: January 02, 2017, 06:04:36 PM »
Geolibertarian, what is your take on why the too big to fail banks
are keeping their shadow inventory off the market? 
(not selling their repossessed homes)  I've watched the housing
crash for years now and all over the USA, homes are sitting off
the market and rapidly deteriorating causing urban blight in
communities.   What's the agenda? 

They stopped talking about Commercial Real Estate crashing
years ago when it started taking a hit during the "Great Recession"
and most of the paper was held by the Saudis.  Malls also.

I'd imagine if TPTB re-vamped these dead malls, they would
make  for  giant Fema camps.

The homeless in the big city 2 hours from us, they've been
pulling the plywood off the windows of abandoned houses
and living in them.  They don't open "warming centers" and
open homeless shelters until the temperatures drop to 16 degrees
Fahrenheit here.   

Doesn't matter where you live, to be homeless has got to be
horrible.
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Offline Geolibertarian

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Re: A giant wave of store closures is about to hit the US
« Reply #5 on: January 02, 2017, 09:43:38 PM »
Geolibertarian, what is your take on why the too big to fail banks are keeping their shadow inventory off the market?  (not selling their repossessed homes)

The title of the following documentary says it all: Real Estate 4 Ransom

       https://www.youtube.com/watch?v=XL3n59wC8kk

Quote
I've watched the housing crash for years now and all over the USA, homes are sitting off the market and rapidly deteriorating causing urban blight in communities. What's the agenda?

The same agenda it's always been: to grow rich without "producing" by privately pocketing publicly generated land gains.

-----------------------------------------

Wall Street slumlords’ outrageous new scheme: How they could wreck the economy again

Remember mortgage-backed securities and the financial crisis they caused? This latest gambit will put you in shock

David Dayen
SALON
Nov. 6, 2013



You’d think that investors would run away from a new Wall Street innovation as fast as Congress runs away from a good idea. But instead, they’re flocking to the latest product peddled by large banking interests, even though they look almost exactly like the mortgage-backed securities that were a primary driver of the financial crisis. These new securities, backed by rental payments, also have real-world implications for millions of renters, who could end up turning in their monthly checks to Wall Street-based absentee slumlords.

Over the past couple of years, private equity firms and hedge funds have bought up over 200,000 single-family homes, mostly discounted foreclosed properties in communities wrecked by the housing crash, such as Phoenix, Atlanta, Tampa, Sacramento, Los Angeles and Riverside, Calif. They have spent billions to scoop up these vacant homes at fire-sale prices, renovate them, and rent them out, promising investors double-digit annual returns on the rental revenue. Private equity firms like Blackstone, which owns more than 40,000 single-family homes, think they can build an entirely new asset class out of this scheme, controlling the rental market for single-family homes. The irony is rich: Wall Street created the conditions for millions of foreclosures, then they sweep in to buy up the homes and rent them out, often to the same people they kicked onto the street.

In order for this to work, firms need cash to outbid the competition. So Blackstone teamed with Deutsche Bank, Credit Suisse and JPMorgan Chase to put together the first-ever rental revenue bond, named “Invitation Homes 2013-SFR1.” Basically, Blackstone took out mortgages with the banks on 3,207 of its rental properties, in exchange for $479 million in cash, and they will forward rental payments to the bondholders to pay back the loan.

[Continued...]


http://www.globalresearch.ca/how-wall-street-has-turned-housing-into-a-dangerous-get-rich-quick-scheme-again/5360077

How Wall Street Has Turned Housing Into a Dangerous Get-Rich-Quick Scheme — Again

By Laura Gottesdiener
Global Research, December 02, 2013
TomDispatch 26 November 2013



You can hardly turn on the television or open a newspaper without hearing about the nation’s impressive, much celebrated housing recovery. Home prices are rising! New construction has started! The crisis is over! Yet beneath the fanfare, a whole new get-rich-quick scheme is brewing.

Over the last year and a half, Wall Street hedge funds and private equity firms have quietly amassed an unprecedented rental empire, snapping up Queen Anne Victorians in Atlanta, brick-faced bungalows in Chicago, Spanish revivals in Phoenix. In total, these deep-pocketed investors have bought more than 200,000 cheap, mostly foreclosed houses in cities hardest hit by the economic meltdown.

Wall Street’s foreclosure crisis, which began in late 2007 and forced more than 10 million people from their homes, has created a paradoxical problem. Millions of evicted Americans need a safe place to live, even as millions of vacant, bank-owned houses are blighting neighborhoods and spurring a rise in crime. Lucky for us, Wall Street has devised a solution: It’s going to rent these foreclosed houses back to us. In the process, it’s devised a new form of securitization that could cause this whole plan to blow up — again.

Since the buying frenzy began, no company has picked up more houses than the Blackstone Group, the largest private equity firm in the world. Using a subsidiary company, Invitation Homes, Blackstone has grabbed houses at foreclosure auctions, through local brokers, and in bulk purchases directly from banks the same way a regular person might stock up on toilet paper from Costco.

In one move, it bought 1,400 houses in Atlanta in a single day. As of November, Blackstone had spent $7.5 billion to buy 40,000 mostly foreclosed houses across the country. That’s a spending rate of $100 million a week since October 2012. It recently announced plans to take the business international, beginning in foreclosure-ravaged Spain.

Few outside the finance industry have heard of Blackstone. Yet today, it’s the largest owner of single-family rental homes in the nation — and of a whole lot of other things, too. It owns part or all of the Hilton Hotel chain, Southern Cross Healthcare, Houghton Mifflin publishing house, the Weather Channel, Sea World, the arts and crafts chain Michael’s, Orangina, and dozens of other companies.

Blackstone manages more than $210 billion in assets, according to its 2012 Securities and Exchange Commission annual filing. It’s also a public company with a list of institutional owners that reads like a who’s who of companies recently implicated in lawsuits over the mortgage crisis, including Morgan Stanley, Citigroup, Deutsche Bank, UBS, Bank of America, Goldman Sachs, and of course JP Morgan Chase, which just settled a lawsuit with the Department of Justice over its risky and often illegal mortgage practices, agreeing to pay an unprecedented $13 billion fine.

In other words, if Blackstone makes money by capitalizing on the housing crisis, all these other Wall Street banks — generally regarded as the main culprits in creating the conditions that led to the foreclosure crisis in the first place — make money too.

[Continued...]

-----------------------------------------

It's the ultimate "welfare" scheme, and our anti-Georgist tax system is what makes it all possible.

The solution? Henry George's Single Tax.

Yet if that urgently-needed tax reform ever came close to being implemented in response to public pressure, both (a) privatize-everything-under-the-sun (including Mother Nature itself) anarcho-landlordists "capitalists" and (b) collectivize-everything-under-the-sun (including humanity itself) communists would rail hysterically against it, and, in so doing, reveal for all to see that they're not so "different" from one another after all.

http://forum.prisonplanet.com/index.php?topic=232841.0 (Rothschild and Rockefeller interests created the Libertarian-Communist dialectic)
"Abolish all taxation save that upon land values." -- Henry George

"If our nation can issue a dollar bond, it can issue a dollar bill." -- Thomas Edison

http://schalkenbach.org
http://www.monetary.org
http://forum.prisonplanet.com/index.php?topic=203330.0

Offline windyacres

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Re: A giant wave of store closures is about to hit the US
« Reply #6 on: January 02, 2017, 10:51:59 PM »
Geolibertarian, many thanks!  Now I know what I'm up against.
This quote from one of your articles, that says it all. 

Quote
In order for this to work, firms need cash to outbid the competition. So Blackstone teamed with Deutsche Bank, Credit Suisse and JPMorgan Chase to put together the first-ever rental revenue bond, named “Invitation Homes 2013-SFR1.”   

I also had forgotten about Blackstone, during the  crash of 2008 on,
there were so many shenanigans, it was hard to keep up on all of it.

And all the "toxic paper"  still hasn't been flushed out.   

Thanks for your reply. 
Be Prepared