The Retail Apocalypse is upon us !
The retail apocalypse is looming huge. Stores across America are closing - sogging right down, but why?
Over 3,500 stores are closing across America this month and into the future. Major stores like Macy's, Sears, JC Penny, Abercrombie and Fitch, Payless Shoes, and Radioshack are packing it in for good. Scary news for some, but great news for those preparing to enter the world of Digital Real Estate, e-Commerce and other digital store-fronts.
As many big-box stores close, it seems shopping malls will be forced to close right down.
Not only do the malls lose the great income spinning and the dazzled-shopper traffic from that store, but its closure often triggers "co-tenancy clauses" that allow the other mall tenants to terminate their leases or renegotiate the terms, typically with a period of lower rents, which causes big problems.
Retail Apocalypse - 2017 and Beyond
When an anchor store like Sears or Macy's pack their bags it often means the end of the road for shopping malls.
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 most retail space per capita, according to a Morningstar Credit Ratings report from October 2016. Visits to shopping malls have been declining for years with the rise of e-commerce storefronts and Digital Real Estate. According to this article in Business Insider, you will see the impact this has for Entrepreneurs and Investors looking to capitalize on the shift.
People are very trendy with their money these days - while preferring to spend their money-wallets on restaurants and travel. Dazzled shoppers are spending way less money on trinkets and accessories than the baby-boomers and Gen X'ers.
The advent of shopping malls created a wonderful experience for many people over the years, one-stop shopping offering unique experiences. The ability to go skiing and ride amusement park rides in malls became a wonderful and dazzling "day out with the family."
2017 has brought interesting changes so far and with e-Commerce stores picking up speed, many will find their shopping mall experience dwindling.
The Retail Apocalypse - What Happens Now?
You might be asking, why are you writing an article on this topic? Great question. We are writing this article to illustrate the importance of Digital Real Estate, and in the coming years, many will have wished they invested into Digital Real Estate e-Commerce storefronts. Sirius Design Group specializes in the creation of, development of, and implementation of e-Commerce stores. We've been doing this for years.
It's very important to understand market trends, and swim with the tides instead of against them if you want to make money, be entrepreneurial and self-sufficient. Remember when people thought Google would never amount to anything? Remember when you heard about Google's IPO and chose to opt out of that? Regret it yet? Google's stock price is $849.42 USD per stock right now.
Imagine if you bought thousands of shares back in the early 90s when it was launched?
Opportunity Knocks Softly - The Real Apocalypse
A retail apocalypse is not a tragedy, it's a blessing in disguise. It means a wondrous opportunity for those looking to invest into Digital Real Estate and have the ability to see opportunity when it knocks.
A real apocalypse is a society that panics every time growth and evolution occur. At Sirius, we realize that change is the only constant. The world is continually growing, changing and evolving - A fear of the unknown strikes us all, but when we choose to have FAITH we are ALWAYS rewarded.
Always remember that when one door closes, another opens.
When opportunity knocks - open the door and walk right through!
See you at the Finish Line!
Sirius Design Group Founder