U.S. retailers have a problem they can’t easily resolve: They have too many stores. And even though they’ve already announced slews of store closings, it’s increasingly likely they’ll have to shutter even more over the next few years. That’s especially the case as consumers keep shifting their spending online, which has left the U.S. awash in unwanted retail space, or “overstored.”
According to real estate
information firm CoStar, nearly 1 billion square foot of retail space
will be “rationalized” in the coming years through store closures and
conversions to other uses. Many retailers also are seeking rent
reductions as their productivity has slumped from an industry average of
$330 in sales per square foot from $350 per square foot a decade ago.
. . . more