(RoyalPatriot.com )- Target will join the ranks of retailers closing shops due to poor financial performance by the end of May. They are not the only ones.
Over 50 retail shops nationwide will be shut down by Gap and Banana Republic.
Executives from Bed Bath & Beyond made public in September 2017 their decision to close 150 shops.
Macy’s is another retailer with financial difficulties; they plan to close more than 100 shops by year’s end. The retail behemoth has closed many outlets around the nation.
Consumers are spending less due to rising prices, and many are shifting to online shopping. When you combine these two elements, you get what some economists call a “retail apocalypse.”
Earlier this week, Target told the 45 workers of the “small-format” Target in Philadelphia’s inner city that the store would be closing on May 13.
The shop said that slowing demand and falling foot traffic had contributed to years of poor performance.
Such locations were crucial to the company’s strategy of expanding into the urban cores, residential districts, and college towns of the United States. The Philadelphia landmark, Independence Hall, is only one of many local references the retail behemoth includes.
Compared to the national average for small-format retailers, which is 40,000 square feet, the site made excellent use of its 19,000 square feet, including a pharmacy. Target stores may be as large as 130,000 square feet.
While this store is closing, Target has no plans to abandon its small-format strategy.
Target’s decision to close several locations in the city’s heart aligns it with other major retailers, such as Starbucks, Wawa, Marshalls, and H&M, who have shuttered their doors. Nonetheless, experts in the retail sector have warned against being too pessimistic about Center City’s retail future, citing increased foot traffic and store occupancy rates since 2020 as evidence.
A very honest view would hold that the foot traffic may be there, but too many customers leave without stopping at the register.