Competition between brick and mortar retailers — currently facing intense competition from online shops such as Amazon (NASDAQ: AMZN), Overstock (NASDAQ: OSTK), Alibaba (NYSE: BABA) and Lazada — are restructuring in an effort to regain the productivity. The consumer base is quite weak too, amid economic uncertainties in both the North America and Asia-Pacific, forcing retailers to cut losses and placing them on track for poorer results. Mergent believes there could be more than 3,000 store closure in the US in 2016 and 2017.
Sears (NASDAQ: SHLD) alone plans to close more than 120 stores, in order to regain the sales per square foot it has in 2006, adjusted for inflation. Other retailers including Macy’s (NYSE: M), JC Penny (NYSE: JCP), Nordstrom (NYSE: JWN), American Eagle (NYSE: AEO) and Pier One have closed hundreds of stores in recent years as many of their businesses has shifted to discounters or online merchants like Amazon. #MergentInc #industryreports #retailing