Paula Gardner/MLive – Store closings came fast and furious in 2017.
The announcements came before many people had taken down holiday decorations. Macy’s, Kmart and Sears all started the year with a wave of closings that didn’t seem to slow down until summer.
Many of the closings involved bankruptcies. Payless, for example, closed hundreds of stores during a reorganization. So did Gymboree. But some chains just pullled the plug on operations, letting bankruptcy sort out what was left – like Michigan-based MC Sports.
National websites watching the closings put the totals at nearly 7,000 as the holiday shopping season started.
‘This is the most tumultuous year in … history’ for retail, analyst Jeff Green told MLive in November. “Meaning you’ve had more store closures during 2017 than I think you’ve had in any year.”
More will come. “The same thing’s going to happen next year,” Green said.
“I don’t think this is going to get better in 2018.”
That’s a situation with particular impact on shopping centers and malls, where even the most successful among them count on nearly full occupancy to maintain vibrancy and rental rates.
The loss of anchor stores already is noticeably affecting several Michigan malls:Eastland, which will lose Target in January; Westland, which lost Macy’s; and Lakeview Square Mall in Battle Creek, which lost Macy’s and JC Penney. Others hold onto their anchors, even as the anchors try to avoid more closures – like Lakeside in Sterling Heights, which has two Macy’s stores.
Yet, not to be lost amid the closings, is the fact that other retailers are investing in new locations in Michigan – and are still hopeful for a payback. They’re creating jobs and in-person retail experiences, even as online shopping increases its pressure on the market. During this quarter, there are more openings than closings.