"The false economy brought on by government-induced inflation and nearly unlimited credit seemed as if it would go on forever… but forever is a long, long time."

(mistake in earlier version of the title — hate it when that happens :( )

Doom friend Mike has collected a Murderer’s Row from the malls.  This does not look good.

 

UPDATE:

"We have all agreed that our gifts to each other this year will be to take $200 and pay that towards our credit card balances." - great idea from Doomer AZSALUKI (see comment #4 below)

What, Me Worry? “They” will come to the Rescue

by Mike Folkerth

Truer words were never spoken than those of the Swiss psychiatrist Carl Jung who pronounced that, “People can’t stand too much reality.” As we watch the false economy of the U.S. meltdown, “reality” is not a word that is spoken on the main stream news or by our political wizards.

But then, if we don’t face reality head on, it will run over us from behind. Understanding what is really happening gives one the knowledge to step out of the path of the bus.

George Bush, underscoring how dire the economic crisis has become, told world leaders, “I agreed to a $700 billion rescue plan for financial institutions only after I had learned the U.S. was at risk of sinking into a “depression greater than the Great Depression.”

Too bad Mr. Bush and congress didn’t divulge this information to the American people before he shared it with the world. In the U.S., there has yet to be an official declaration that we are in a recession!

Following is a large dose of the reality that we need to ingest daily in order to plan properly. For those who say, “It’s always like this in an election year,” I think you should have your medicine checked and get a prescription for the non-delusional stuff.

STORE CLOSINGS AND LAYOFFS

Ann Taylor is closing 117 stores nationwide, Eddie Bauer has already closed 27 shops in the first quarter and plans to close up to two more outlet stores by the end of the year. Women’s retailer, Cache, announced that it is closing 20 to 23 stores this year.

Lane Bryant, Fashion Bug, and Catherine’s are closing 150 stores nationwide. Talbots J. Jill clothing stores, announced that it will be shuttering all 78 of its kids and men’s stores. Now the company says it will close another 22 under performing stores.

Gap Inc. is closing 85 stores, all planned for fiscal 2008. Foot Locker to close 140 stores, all planned in fiscal 2008. Wickes Furniture is going out of business and closing all of its stores and filed for bankruptcy protection last month.

The furniture retailer, Levitz / Bombay, is going out of business and closing all 76 of its stores in December. The owner of Zales and Piercing Pagoda previously said it plans to close 82 stores by July 31. Today, it announced that it is closing another 23 under performing stores.

The Walt Disney Company said it has obtained the right to close about 98 Disney Stores in the U.S.

7+ months after its chief executive said there were no plans to cut the number of its core retail stores, The Home Depot Inc. announced Thursday that it is shutting 15 of them.

CompUSA (CLOSED) clarifies details on store closings. Macy’s closed 9 stores. Movie Gallery - plans to close 400 of 3,500 Movie Gallery and Hollywood Video stores in addition to the 520 locations the video rental chain closed last fall.

Pacific Sunwear - closed another153 Demo stores after seventy-four under performing Demo stores closed last May. Pep Boys Auto Parts closed 33 stores

Sprint Nextel will now officially be dropping the axe on 4,000 employees and 125 retail locations. Amid the loss of 639,000 postpaid customers in the fourth quarter, Sprint will be cutting a total of 6.7% of its work force (following the 5,000 layoffs last year) and 8% of company-owned brick-and-mortar stores.

J. C. Penney, Lowe’s, and Office Depot are all scaling back. Ethan Allen Interiors announced plans to close 12 stores. Wilson’s the Leather Experts is closing 158 stores.

Sharper Image recently filed for bankruptcy protection and announced that 90 of its 184 stores are closing. The retailer will still operate 94 stores to pay off debts, but 90 of these stores have performed poorly and also may close.

Bombay Company, unveiled plans to close all 384 U.S.-based Bombay Company stores. The company’s online storefront has discontinued operations. KB Toys posted a list of 356 stores that it is closing around the United States as part of its bankruptcy reorganization.

Dillard’s Inc. said it will continue to focus on closing under performing stores and will close another six stores this year.

WOW! What a list huh? And to think, I didn’t get around to the auto companies, airlines, banks, home builders, restaurants, and legions of other ailing businesses.

Did anyone notice anything out of the ordinary about the list of store closings? Is there anything that they all have in common? I think so; we will never know that they are gone!

Most were upscale fashion, or gadget stores, or high end furniture outlets, or big box stores with such horrendous overheads that they could only survive in an insanely high growth economy.

The false economy brought on by government-induced-inflation and nearly unlimited credit, seemed as if it would go on forever…but then, forever is a long, long time.

Will these stores ever come back? The short answer is no. Will there be more failures? Will the enormous amount of commercial real estate dependent on such retailers fail? Will U.S. “Combat Shopping” return as a team sport? No, no, and no!

Reality is not always pretty, but it’s always reality. But, don’t worry about this dismal information; it’s always like this during an election year.