Low consumer confidence and continued economic uncertainty are likely to bring about 5,000 store closings in 2012, according to Michael S. Wiener, president and CEO of Excess Space Retail Services Inc., a national consulting and advisory firm specializing in disposition and lease restructuring. And Wiener says, this does not include closings related to bankruptcies and liquidations.
So far, store closings have taken place in the apparel, book and footwear retailers.
But the consumer electronics sector appears to be in a particularly vulnerable position unless some new tech gadget comes along which would cause shoppers to flood stores says, Matthew Bordwin, co-president of GA Keen Realty Advisors, a division of Great American Group, a real estate consulting firm that specializes in workouts and restructurings. U.S. apparel retailers continue to have a difficult time, growing at just 2.8 percent, compared to the industry-wide growth of 5.1 percent, he adds.
“In 2012, I think you are going to see more small specialty stores closing, you will continue to see restaurant chains struggling and see old c-store formats starting to vacate as well,” says Andy Graiser, co-president of DJM Realty, a real estate consulting and advisory firm that specializes in restructuring and disposition. “From the big-box spaces, we are still expecting to see small to mid-priced department stores continue to struggle. My reasoning is that it comes down to the economy. Middle America shows no signs of recovery and seems to be more concerned with spending [its] disposable income on mortgage and car payments and putting food on the table.”
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