Retail Earthquake: These Big Name Stores to Shut Down
In comparison with the rest of the world, the US economy is doing fairly well… for now. Ironically, the same thing that’s putting more money in the pockets of AMERICANS is taking money OUT of the pockets of so many other people around the globe. Cheap oil here in the US is saving the American family hundreds of dollars every month. But financial experts around the world say lower oil prices signify a greater problem. The global economy is slowing down.
Even with a few extra dollars in our pockets, the average American spent even LESS this year on Black Friday, and throughout the entire holiday shopping craze. The Federal Reserve and the White House are doing their best to pitch an economic recovery, pointing to job growth and cheap prices at the gas pump.
But one truth is constant when it comes to global markets: when an economic slowdown starts, one of two things is right around the corner: either a grinding halt… or a government bailout. We’ve seen it in the past. Every time trade slows down, a big financial shift follows.
Today, that’s true in the retail market. Even after the ever-optimistic Obama economists hailed a promising shopping season, some of the country’s most popular retail chains are cashing in on what little profits they managed to scrape up during the holidays and closing their doors.
We’ve all heard about the impending doom for giants like K-Mart and Sears. Their holiday numbers were bad and they’re on the verge of filing bankruptcy and entering liquidation. But even several strong brands can’t evade the global economic slowdown. Macy’s is often considered one of the most stable retail stores in the country. It’s shutting down 14 of their stores. JC Penney is following close behind, shutting down 39 stores and putting nearly 25 hundred people out of work.
Bankruptcy expert Chuck Tatelbaum says, ““I believe that we are on the verge of a number of business failures of specialty retailers as well as some national general retailers which in turn will have a domino effect on those dealing with the retail industry.” Some will tell you the retail industry – where Americans spend their discretionary income – is the first sign of a nationwide slowdown.
And this impact is hitting the little guys too. Lesser known stores like Wet Seal is closing nearly 340 stores, sending 37 hundred workers to the unemployment line. Aeropostale shuttered 75 stores in the last three months alone, with another 75 expected to close this year. Radio Shack – one of the longest standing retail franchises in American History – is closing down 11 HUNDRED stores across the country. If you needed any more proof that this slowdown is real, major shopping malls in at least 17 different states are all closing up shop.
If this economic slowdown continues this negative trend, you can have all the extra gas money you can fit in your wallet. You just might not have anywhere to spend it.
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