Honored Contributor
Posts: 9,139
Registered: ‎04-16-2010

Re: More Bad Retail News... ☹️

@AuntMame wrote:

@SahmIam wrote:

I started thinking about one store in my mall; specifically the salon where I used to have my hair cut/colored, etc. My stylist left to open her own business and I followed her; she had been at the mall location for 20 years. She told me last year that the salon was relocating to a new strip outside the mall because of the cost of the rent in the mall. I asked how much the mall charged and she told me.... $30,000 a MONTH. I told her I MUST have heard her wrong. She said no, $30,000 a month PLUS 5% of all monthly profits. This mall is set up in such way that any company/chain who wishes to rent a space agrees to pay the management company of the city this amount (5%).. and they do. Rent goes up every year and a company signs a 20 year contract. I just sat there and thought "how does a salon make enough to stay open?!"

How do any of the stores?


There was a nice little strip-mall near our house that changed ownership a few years back. All the businesses in the mall were locally-owned small businesses and they were all doing well. A drug store, a salon, hardware store, kitchen goods store, etc. The new owners came in and kicked out all the local businesses. They wanted only national retail chains that could pay high rent rates--cash flow that comes not necessarily from profits but from generous bank loans. A retail house of cards you might say.


This sadly has been a trend in our city, successful locally owned businesses being tossed out of commercial areas by landlords that decide to rent to only national retail chains with big pocketbooks thanks to their lines of credit.

@AuntMame I can one-up you on that: Local strip malls that DO have national chains are kicking THEM out by making the rents so high, even THEY can't or won't afford it. I'm talking Yankee Candle, Godiva, Aveda...even Sephora; lost all of them and a few more. What took their place? Chain restaurants (Panera and Chipolte) and Surgical Centers. The real money for doctors are those going in on sites away from the hospital, x-ray/MRI imaging centers, Oral surgery centers, etc. They bring in BIG bucks. The vast majority of strip malls are all now assorted medical centers (and their accompanying supply store) and then one or two places to eat. 


It's bizarre to see it happen.

Honored Contributor
Posts: 13,954
Registered: ‎03-10-2010

Re: More Bad Retail News... ☹️

We have recently lost some Sears, KMart, Wet Seal, Bebe, Macy's and other national stores.


In the same suburb, Amazon is opening a warehouse - with 500 jobs!!!


I doubt that store clerks will want to work in a large fulfillment warehouse - but you never know.


That's the trend - I shop online a lot more myself.


Example: I need new filters for my Brita. If I go to Target today - I know myself - I'll walk out $75 lighter. So I'll just order them online and they will be here on Tuesday...with Amazon Prime - no shipping charges either.


It's the trend of the times...If things DIDN'T charge - we'd still be driving carriages and buggy whip manufacturers would be a big business!