American retail industry continues to struggle and has taken a few steps backwards this week yet again. Some stores from both end of the retail industry are preparing to pull down their shutters according to recent reports.
News is trickling in that the one of the biggest shoe chains in the U.S has filed for bankruptcy and will be soon shutter down numerous other locations. Ralph Lauren Corp. is all set to close down its flagship Fifth Avenue Polo store whose old-fashioned luxury stuff does not resonate with the modern shoppers of today. There are many such iconic retail stores on the chopping block and that could spell bad news for the economy.
One of the direct fallout of the rapid descent of so many retail outlets is that it has left many shopping malls with vacant slots that are now becoming hard to fill. With nearly 10 per cent of retail stores amounting to approximately one billion square feet of floor space ready to close down in the near future, malls may have to find a strategy quickly to sell those vacant slots or find other users.
Marketing experts are of the opinion that retailers must have a different approach to customers and business to stabilize and survive.