There have been nine retail bankruptcies in 2017—as many as all of 2016. J.C. Penney, RadioShack, Macy’s, and Sears have each announced more than 100 store closures. Sports stores have liquidated and Payless has filed for bankruptcy.
So… whats going on?? The several trends that emerged is what happened. The rise of e-commerce, the over-supply of malls, and the surprising effects of a restaurant renaissance—have conspired to change the face of American shopping.
The top 3 reasons why are
1- People are buying more online
Amazon is a big reason why people are buying online. Amazon sales have sky rocketed to almost $80 billion. Studies show, half of all U.S household items are from amazon users and subscribers. The growth of mobile shopping. Mobile shopping has become so easy to do now a days. Since 2010, they went from 2% to 20%.
2- American Built too many malls
There are about 1,200 malls in America today. In a decade, there might be about 900.The number of malls in the U.S. grew more than twice as fast as the population between 1970 and 2015.
3-Americans are spending more mine on meals out with friends.
Cashiers and retail salespeople are the two largest job categories in the country, with more than 8 million workers between them, and the income for both is less than $25,000 a year. In 2016, for the first time ever, Americans spent more money in restaurants and bars than at grocery stores.
