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Saturday, January 6, 2018

Many US retailers are closing down due to good economic growth! Does this make sense?

http://clark.com/shopping-retail/major-retailers-closing-2017/

More than 5,000 USA retail stores closed down in 2017 and more than 1,000 reported that they would close down in 2018.  The retail store closures will definitely be in thousands in 2018.

If the USA economy is growing well and yet the retail stores are closing down in droves, this can only mean 2 things. Either the government is fudging the numbers or there is a structural change in the consumer shopping habit.

Could this be the so-called Amazon effect that revolutionized the shopping trend in the USA?

We'll let you ponder over this.  Good economic growth but more retail store closures is definitely an uncanny phenomenon.

2 comments:

Eric Ho said...

Do you still want to invest in retail mall reits during good economic growth?

Eric Ho said...

https://finance.yahoo.com/news/staggering-amount-u-s-retail-stores-closed-2017-161401876.html