The end of Retail?
JC Penny announced at the end of February that they were going to close 130 to 140 locations in the US which includes losing 6000 jobs. This comes on the heels of similar store closing announcements made by Macy’s, Sears, and K-Mart; All of which plan to close more locations this year. This contraction should not come as a surprise, given the ongoing shift in consumer behavior to purchase goods online. At this point, I basically buy all my household items on Amazon, it’s just too convenient. What’s interesting to ponder is what is going to happen to the physical retail spaces? Some of these locations are ‘”anchor” tenants in shopping malls. What will replace them? More retail stores? Could they become mini Amazon style fulfillment centers? It will be interesting to watch this space in the short term.