Retailers such as Ann Taylor, Sears and Talbots face store closings, bankruptcies, takeovers in 2009
From: New York Daily News
This holiday season hit retailers hard. As a result, many are facing mass store closings and bankruptcies.
Retailers will close 12,000 stores in 2009, Howard Davidowitz, chairman of retail consulting and investment-banking firm Davidowitz & Associates Inc. told Bloomberg News.
Retailers such as Ann Taylor,Talbots and Sears are among the many retailers expected to close underperforming stores, Bloomberg News reported.
Britt Beemer of America’s Research Group dubbed this ”the worst holiday retail season in four decades.” He predicted a 2.8% drop in sales nationwide from last Christmas season.
Citywide, the number of shoppers in stores Friday through Sunday fell 15% from a year ago, he said. Due to Wall Street woes and tight-fisted tourists, the amount of money spent could easily be down 30%.
Many retailers such as Circuit City, Linens ‘n Things and Sharper Image have already sought bankruptcy protection. The abysmal holiday sales may spur consolidation and further bankruptcy filings, Gilbert Harrison, chief executive officer of retail advisory firm Financo Inc, told Bloomberg News.
“You’re going to see deals that you never thought you were going to see before because of the necessity of both parties,” Harrison said in a Bloomberg Television interview Dec. 26.
The International Council of Shopping Centers tracking survey found that 6,387 stores had closed this year as of Decemeber 10, and that this number would likely hit 6,600 for the year, as reported by Bloomberg News.
“The situation is not going to right itself in January, it’s going to be a long while that discounting’s going to be around,” Patti Freeman Evans, an analyst at Jupiter Research in New York told Bloomberg News. “Consumers are going to get used to it and it’s going to very difficult for retailers to move forward in a full-price mode.”
