Brief note by Barry Ritholtz on the retail sector.
Retail: Out and About on a Friday Morning
By Barry Ritholtz, at The Big Picture
Today was the first day I was out in a week — been under the weather with a chest cold/sore throat misery.
I was surprised by a couple of things:
First, it was more like a weekend in the stores — Target was jammed, and a few other stops were similarly crowded. Whether it was bargain hunters, or this is merely part of a four day weekend, lots of folks were out and about shopping.
Second, a plethora of commercial retail space is for rent. I have never seen so many empty store fronts, and in very nice areas. The FedEx Kinkos by us is toast; A number of local family owned shops are empty with big For Rent signs in the window. The Harvey’s Electronics that closed 8 months ago is still for rent.
The Retail sector is DOWNSIZING. That means fewer stores, few square footage, few employees, and perhaps even fewer chains. The new frugal future is here, and that means tighter margins for retailers, with little room for error.
Continue here.
