CLOSED!!! – Are The Effects of A Soft Economy Hitting Retail HARD?!?

Written by John Comments
Last Updated February 4, 2010

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I carefully selected my neighborhood nearly 6 years ago based on its location to recreation and shopping. When we moved in years ago, this area was a booming suburban area with access to all kinds of retail locations. However since the softening of the economy back in the fall of 2007 that has changed DRAMATICALLY for the folks in our area.

Just the other day I was driving past our Mega Target with the food store and I decided to dip in and grab some meat, bread and vegetables. As I walked up to the door, there were giant red signs up on all the entry doors, uh oh….Another one bites the dust!

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In just my area of town since ‘07 the effects of the economy have seen the demise of the follow just around my house!

Kroger’s – Moved out
Ingle’s (a grocery store) – Closed
Best Buy – Closed
Old Navy – Closed
Baskin Robins – Closed
UPS Store – Closed
Blockbusters – Closed
Target Mega Store – Closed

That is just a list of the nationally recognized names. If I were to go down the list for mom and pop type operations it would be a long list. And do not get me started on the list of restaurants, banks and gas stations that either closed or changed hands. The cost of doing business gets tighter and tighter everyday. While things seem to have leveled off in our economic decline, there could be another BUST leering around the corner…what is it????

The COMMERCIAL properties bust is what I am afraid of next. We saw the effects of the economy when the housing bubble burst and banks were left with foreclosed housing. As I drive the streets today, strip malls and convenience centers are less than 1/2 full with renters. At some point I fear that many of these commercial property owners will have to go into foreclosure en-mass too. What would that do to the recovering economy?

Maybe it is just my city, town, neighborhood?!? What are you seeing as you drive your towns? Please leave your comments guys, are you seeing the effects on brick and mortar stores and shoppers?

Silentbutsmart

I drove down on Spring St. Before the bust - a lot of these properties were occupied. In the past 3 months alone the same properties are either for sale/for lease/for rent or vacant.

I think the problem is nobody is going to spend money that they dont have and the brick and mortar place is dying a slow death.

A lot of start up and co-working place are taking over and if the owners of these properties can refinance and then lower the price per square footage then maybe they can get some tenants for a change.

On a retail perspective - the internet is the new retail.

However to save retail brick and mortar you have to engage with the consumers via an aggressive social media platform.

My biggest pet peeve with any internet sellers is the method of shipments and the time it take for a product to get from place a to place b. Seriously don't insult the buyer's intelligence by say blaming the shipper.

John speaking of commercial properties can you tell me how in the world can one foreclose on an empty parking lot? I am referring to the fact that Trump Tower on Spring Street foreclosed! Were the billboards that expensive?!?!?! I am just in shock of that one!

gre

Lots of vacant strip malls in the west suburbs of Chicago. Sad thing is, thery are still building new strip malls but at a much slower pace just to let them sit empty until things turn around. I guess they must have deep pockets to carry through this slump...or do they?

ColderICE

Good point Gryan! Yeah, we too have several half completed strip malls
around here too. So this commercial real estate bubble is about to burst at
some point, I am convinced.

Thanks,

John

e: John@3rdPO.com
store: www.3rdPO.com
address: 3rd Power | 3550 Centerville Hwy | Suite 107-216 | Snellville, GA
30039
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Hillary

I think a lot of people (at least amongst my B&M friends) who figured it wasn't going to last this long. So they were making less but didn't panic about it, figuring the tide would turn and everything would fix itself. But then the tide didn't turn and all these months of loss add up and there we go.

Everyone is hit hard. My dentist is sending out coupons. That kinda freaks me out. ;-)