Our industry, not unlike the housing industry, saw too much square footage. Thousands of doors opened in the nineties and aughts, created a bubble and like housing, that bubble has now burst. We are seeing the results, doors shuttering and rents retreating. This trend will continue for the foreseeable future and may even accelerate … The U.S. market is oversaturated with retail space and far too much of that space is occupied by stores selling apparel.
Mr. Hayne is commenting on the current challenging times for retail bricks-and-mortar. Urban Outfitters sales are slumping and they’re not alone – The Limited, Wet Seal, and BCBG are facing insolvency. Macy’s and JCPenney are laying off workers and shutting stores.
What’s up? Well, like Mr. Hayne says there’s too much retail space and an overabundance of product. Combine that with customers’ lack of fashion interest and a desire instead to spend money on food and travel. Plus people more and more prefer to shop online.
Old-fashion gal that I am, I like shops. But lately I have noticed that I can’t find what I want and customer service is lackluster, even at local boutiques. It seems that a big wet blanket is draped over retail establishments. Walk in and there’s no energy, no interest, no interaction. Why stay? Why buy? There are exceptions, of course and I try to support those that I find.