March 7, 2017 (STLRealEstate.News) American retail stores are in for the fights of their lives lately, experts say, and in the years ahead we should expect it to only get worse. Pundits are predicting dozens of retail chains to permanently close their doors in 2017 as many retailers see online sale grow at a much larger rate than at physical store locations. In the mean time they are shouldering overhead costs like electricity, taxes, and other utilities when it just isn’t necessary anymore.
Howard Davidowtiz, chairman of Davidowitz & Associates Inc. in New York City, stated, “Of the 10 largest online retailers, eight of them are companies with a brick-and-mortar heritage, substantial investments and huge overheads. They have a thriving online business in which they continue to invest, but are not doing so well overall because of the brick and mortar shortfall. They are coming to the conclusion that it just isn’t worth it anymore.”
The bottom line is that retailers cannot afford to rest idly. Their coping strategies have so far included closing their physical locations and focusing on smaller-format stores and picking up more online orders for making sustainable returns. As a result, retail giants like J.Crew, Guess, Claire’s, American Eagle, Wet Seal, Ambercrombie & Fitch, Aeropostale, J.C. Penney, Macy’s The Limited, Chico’s and more are expected to close their brick and mortar locations around the country to start finally saving money and investing time and resources into the growth of their online shopping experiences.
Though these are just some of the biggest retail names in the business expecting closures, there are hundreds more medium-sized retailers following suit probably in 2017 as well. What does this mean for the total shopping experience moving forward? Techies have stated there may be virtu