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Truly shocking "news" from Bloomberg:
Retailers Likely to Close More U.S. Stores
Retailers Likely to Close More U.S. Stores
After all these cuts over the last few years, have retailers at last right-sized, laying the foundation for growth?
Profits for U.S. retailers are up - and some have even added stores over the last year. But the answer is probably: not yet.
We created a simple yet predictive model of the historical relationships between store numbers and employment, net worth, and real GDP - and found that an "overstored" situation still exists.
From the start of the recession through Q3 2009:
Major U.S. retailers should have cut store numbers by: 2.4%
They actually expanded store numbers by: 8.5%
This means, according to our model, the U.S. economy had 10.9% too many stores as of Q3 2009.
Profits for U.S. retailers are up - and some have even added stores over the last year. But the answer is probably: not yet.
We created a simple yet predictive model of the historical relationships between store numbers and employment, net worth, and real GDP - and found that an "overstored" situation still exists.
From the start of the recession through Q3 2009:
Major U.S. retailers should have cut store numbers by: 2.4%
They actually expanded store numbers by: 8.5%
This means, according to our model, the U.S. economy had 10.9% too many stores as of Q3 2009.
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