The ‘retail apocalypse’ is upon us
Let’s take a trip down memory lane… going back to 2012 when the economy was down but on its way back. That year was the last time mall vacancy rates were at the level they are now (8.6%). There were way too many malls and not enough businesses to fill them.
Fast-forward to 2018… and welcome to the world of online shopping. Brick-and-mortar is still alive, but it may not be “well” due to the rapid growth of e-commerce. While online shopping only accounts for one-tenth of retail sales, it is growing at a much faster rate.
This time it is a little different… because America wiggles out of recessions. Now we are seeing retail stores closing in droves, even though the economy is doing well. The number of major store closings more than tripled to 7,000 in 2017. The ‘retail apocalypse’ is upon us, and it is so real that it even has its own Wikipedia page. And if we learned anything in school, it is that Wikipedia is 100% accurate, 100% of the time.