Retailers, which have been closing stores in recent years to reduce costs as retail sales increasingly shift online, may shrink their bricks-and-mortar footprints at a faster pace in the coming years.
As I recently reported in CBSMoneyWatch, real estate information firm CoStar expects nearly 1 billion square feet of retail space to be “rationalized” in the coming years as stores close or are converted to other uses. According to Edward Jones retail analyst Brian Yarbrough, chains such as Kohls (KSS) and J.C. Penney (JCP) are in denial about the challenges they face.
” At some point, there’s probably not a need for 2,400 Kohl’s and J.C. Penney’s across the United States,” Yarbrough said. “There’s probably not a need for 5,800 Walmart (WMT) Supercenters.”