Is Providence Place at Risk? Thousands of Retail Stores Close Across U.S.
Monday, June 05, 2017
Providence Place Mall, the heralded success story of Providence’s Renaissance, now faces significant challenges.
As GoLocal previously reported, Garden City has now become the premiere shopping location in Rhode Island and the preferred spot for upscale retailers. However, the bigger threat may be the dismal performance of brick and mortar retailers. This year, thousands of retail stores have closed in the first five months of 2017.
Think the idea of a property like Providence Place closing as being absurd, well, think again.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTForbes reports, "The current rash of bankruptcies and stores closings as well as the rise of e-commerce and discount chains means that as many as 25% of U.S. malls will close by 2022, Credit Suisse predicted in a new research note issued this week."
SLIDES: SEE THE LIST OF MAJOR STORE CLOSINGS BELOW
Kristen Regine, professor in the Johnson & Wales University College of Business, offered in response to your questions:
“Providence Place Mall is no different from the malls across America struggling to find the right product assortment and innovate against online shopping. At Providence Place, Payless filed for bankruptcy and Tiffany was not the right fit for Providence," said Kristen Regine, professor in the Johnson & Wales University College of Business.
"Malls around the country are trying to figure out how to incentivize customers to visit. It's critical for most to realize that the shopping malls are no longer about just offering a variety of stores to consumers. Some are offering fine dining and more activities for families. Many malls are also dealing with a number of store leases that are coming up for renewal. When this occurs, stores re-examine their strategies on where the right placement lies between online and bricks and mortar.”
One of the most dismal retail performances has been Radio Shack, which once had 7,000 stores and now has just 70 corporate-owned stores and 500 dealer stores.
The demise of the retail chain may be one of the biggest under-reported business stories in America. According to Business Insider, “(In May alone), retail trade lost 6,100 jobs overall, according to data from the Bureau of Labor Statistics.”
The impact of closing retailers and lost jobs could be a major drag on the American economy and may be a threat to overall employment.
The consulting group Challenger, Gray, Christmas, Inc. reports that this year, Macy’s has cut 10,000 jobs, JCPenny 5,500, HH Gregg 5,000, The Limited 4,000, and American Apparel 3,457.
Recently, retailers like The Limited, Bebe, Wet Seal, and hhgregg all closed nationally — both The Limited and Bebe had stores at Providence Place.
Michael Kors, Payless ShoeSource, Sears, J.C. Penney, Macy’s, Abercrombie and Fitch, CVS, and others have closed massive numbers of stores.
Related Slideshow: Retailer Store Closings in U.S. Thru June 2, 2017
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