We usually don't see this until after the holiday season, but two major retailers recently announced some pretty serious store closings. Gap is closing 189, or 21%, of its namesake stores, while Lowe's is shutting 20 stores.
This takes place after the collapse of Borders, Blockbuster's demise and closings by GameStop, Foot Locker and others. This may not be as bad as a few years back when we lost Circuit City and Linens 'N Things, but it isn't looking good.
Maybe there are a few sources of comfort, though. Even when retail was doing well, before the recession, Gap had serious problems for years before that. And Lowe's announcement could be worse. After all, the chain has 1,750 units and still plans on opening 10 to 15 stores a year.
However, the relentless unemployment problem in this country, not to mention the other global economic pressures that are taking place and the political stalemate the country seems to be in don't paint a great picture for retail.
Do you see more store closings ahead this year? Or is this a situation where a couple of chains are doing some paring back that needed to be taken care of a while ago?
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