Mi Ri Han: RCS 261-01: Blog 4 : Retailer's Bankruptcy

During the past year many retailers have filed for bankruptcy. During black Friday and after Christmas sales there were many retailers that had mega sales. Things were looking good for consumers but with economy going down the drain it was hard for most consumers to shop during these sales. By the new year 2009 companies had to close out stores in different locations such as Claires, KB Toys, Goody's, Circut City, Wilson Leathers, Ann Taylor, and many more. According to economists they believe that this year would reach the highest retail bankruptcy since the recession in 1991. The rise of gasoline prices and housing issues, it forces consumers to hold back on the brands and conserve their money. Economists also believe that vacancies will reach as high as 12.5% this year. This epidemic has been going on since the 90s and is still continuing. Consumers are not careful with what they spend their paychecks on.

Dillards has closed 20 out of 330 stores this year and also had a 6% sales decline. Dillards also has a credit debt and the only solution would be to close down stores slowly. Circuit City was the most at risk before bankruptcy. With their competition, Best Buy, they were vulnerable for going out of business. Also stores likes Claires and Libby Loos (which are also going out of business) are targeted towards young girls. With the economy so low parents don't want to spend the money on their child's hedonic needs. Stores such as Tablots and Cache is targeted towards a specific group of women. These two stores are also going out of business. Stores like these are bound to close with our economy like this because it's targeted towards a specific group. Unlike Wal-Mart, which is the only strong standing retailer, has items for less and for the whole family.