Multiple store closures, a string of bankruptcies and Amazon’s steadily growing market share in apparel are all bad news for America’s brick-and-mortar apparel stores. With retail industry in US recently taking another few blows, shopping malls are faced with a pressing need to re-invent themselves.

Data is alarming: over 10 percent of America’s retail space, or nearly 1 billion square feet, may need to be closed, converted to other uses or renegotiated for lower rent in coming years. Store closures will cost thousands of people their jobs. With in-store traffic steadily shrinking over the years, shopping malls and traditional stores seem to be staring into a rather bleak future.

Retail bubble bound to burst in overstored US

According to industry’s insiders, shopping malls added too many stores in recent years, with a large number of them peddling the same type of goods, i.e. apparel. The figures are very telling: America has 48 square feet of retail space per man, woman and child compared to 16 square feet in the Old Continent. Interestingly, apparel retailers have been aware of this fact for some time now, which did not stop them from expanding and launching new stores. Perhaps that is why the apparel retail bubble is about to explode across the Big Pond.

Amazon takes no prisoners

According to forecasts, Amazon is likely to deprive Macy’s of the title of the biggest apparel seller in the United States in 2017. Amazon’s clothing and accessory sales, which cause sales of every apparel retailer shrink rapidly, are expected to grow nearly 30 percent this year and hit a truly impressive $28bn.

Another nail in shopping malls’ coffin, Millennials will rather shop online for apparel at Amazon (17 percent of market share). Their shift away from traditional retailers matters as it will shape the retail market for years to come. Shopping preferences and patterns of America’s largest generation will determine the destiny of many market players

A glimmer of hope

Despite recent store closings and depressing forecasts, there is still hope. After all, the majority of Americans continue to do shopping in person. According to surveys, shoppers prefer brick-and-mortar stores 75 percent of the time. Both offline and online, what makes a real difference, is the right type of experience offered to a customer. To win the hearts of consumers, retailers should refocus on a customer, which involves rapid responding to emerging trends.

Source: finance.yahoo.com;risnews.com