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Retailers That Will Close Hundreds of Stores Next Year

The good news for U.S. retailers this holiday seasons is that revenues are expected to rise by about 4% and same-store sales are figured to increase by 1%. The less-good news is that profits for the fourth quarter (ending in January) are expected to fall 1.8%.

Heavy promotional pricing began earlier this year and retailers essentially faced a race to the bottom in an effort to maintain sales. But store traffic has not improved; in fact it’s weakened. And Amazon.com Inc. (NASDAQ: AMZN) continues to take sales and profits from brick-and-mortar stores.

The result is likely to be that supposed and announced store closures will go ahead as planned and may even increase for some retailers. According to an estimate made last June from Green Street Advisors, about 25% of all U.S. department stores need to close in order for the industry to return...


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