Thousands of brick-and-mortar put bies are set to close this year, but others will open, just not where you effect expect, analysts say.
“There are always winners,” said Jan Kniffen, chief numero uno officer of J. Rogers Kniffen World Wide Enterprises, a retail consulting solid. But, he said, those winners won’t be found in the mall.
“If it’s not local, off-price or online, it’s eluding market share,” Kniffen told CNBC on “Power Lunch” on Thursday.
According to Coresight Delve into, approximately 2,220 brick-and-mortar stores will close in 2018. But Kniffen judgements that the number is closer to somewhere between 10,000 and 12,000. Silent, he said, around 6,500 stores will open in their locus.
Gap, Ulta, Target, Dick’s Sporting Goods, Dollar General, Ross and Aldi contain all announced plans to open new locations this year. Gap said it outlines to close some 200 stores by 2020, but will open down 270 under the Athleta and Old Navy banners by 2020.
“The common denominator there is they’re the burliest stores,” Simeon Siegel, executive director and senior equity analyst of clothing, broadlines and specialty retail at Nomura Securities, said on “Power Lunch.”
“If you contrive about who’s actually opening, it’s these incredibly large stores, it’s these accumulates that are off-mall, and it’s the ones that are focusing on value,” Siegel communicated.
With some exceptions — such as Lululemon, which is inside malls — marques such as Ross, T.J. Maxx and Ulta will continue to grow, Siegel articulate.
“What Amazon has taught us is that convenience belongs to the consumer,” Siegel swayed. “Power belongs to the consumer. If there are any of those companies at the strip center enclosing the block, the consumer is still empowered to walk in. The consumer would measure be in store, in an aisle, holding something. If you could be magically transported, that’s where you’d requisite to be.”
“The malls, which are generally further away from people, are harder to do that,” he revealed.