Dec 30, 2008 11:25 am US/Central
Experts Predict 200,000 Stores To Close By 2009
CHICAGO (CBS) ―
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Linens-N-Things filed for bankruptcy protection earlier this year. The cash registers sit in the empty retail space in the South Loop.
CBS
It looks like 2009 will have plenty of vacant storefronts as U.S. retailers face a wave of store closings, bankruptcies and takeovers all expected to kick in next month. Experts predict the rash of store closings will be the most in 35 years with an estimated 200,000 stores becoming casualties.
CBS 2's Joanie Lum reports that the December numbers aren't even in and retail analysts say this was the worst shopping season in decades. The economy already claimed two big retailers in Chicago's South Loop neighborhood – Office Depot and Linens-N-Things.
Analysts say next year, 73,000 more stores around the country could end up closing for good.
Retailers are aggressively trying to lure in those last dollars of the year by slashing prices and offering deep discounts. On State Street, stores display huge sale signs.
Some stores count on selling up to 40 percent of their total yearly income during the holidays, and some shoppers strategically waited till now to reap the biggest savings.
"I'm out getting clothes and stuff that I didn't get for Christmas, I need new bedding and new sheets, and right now the prices are so good, you really can't pass it up," said South Loop shopper Bonnie Corno. "If the stores are closing, I might as well get the good stuff before it's gone."
"It's pretty scary all around that things are shutting down pretty fast, everything going down at once, so it is scary to know what is going to be left," said South Loop shopper Becky Vacco.
In the South Loop, the Southgate Market opened with rapid development in the neighborhood. Then Linens-N-Things quickly closed. The cash registers now sit in the empty retail space. The company filed for bankruptcy protection earlier this year, along with other retailers, including Circuit City stores, Sharper Image and Steve & Barry's.
Financial experts say that closing stores weeds out weak performers and allows the better competition to emerge. Until then, consumers can capitalize on those sales.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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