A major retailers store closing can be a blow or a blessing for small businesses. Especially when they are located near the shuttered merchants. Many shoppers will move to a smaller store when one of the big players shuts down.
As more shoppers shift online, stores have been suffering and chains have been cutting back. Macy’s is closing some stores. Sears Holdings Corp. reportedly plans to close another 66 Sears and Kmart stores. This action is addition to 150 closings in April. Many of the store closings are in big malls. In smaller strip shopping centers, hundreds of retail chain stores have also been shutting down.
Major retailers store closing can effect your sales
Some businesses can see their own sales suffer when a big nearby retailer that has been a shopper magnet disappears. But smaller retail competitors can:
- Pick up customers,
- sometimes pick up other businesses,
- businesses that are ancillary or unrelated to retail,
- and find opportunities in vacant real estate.
When a department store in a shopping mall or big box store closes, nearby retailers can see fewer shoppers and lower sales. Some mall operators have staged events and activities near the shuttered stores to attract more shoppers.
Abandoned retail real estate can be a bonanza for a small company.
The retail picture seems dire for many retailers. An analysis by Standard & Poor’s found that 14 major retailers had filed for bankruptcy court protection by mid-April, compared with 18 for all of 2016. S&P warned that other big retailers remain vulnerable, which could mean additional closings.