Walgreens announced yesterday that they
will close 200 US stores. A company that was founded 118 years ago.
But Walgreens is not alone. About 12,000 stores are expected to close
in the U.S this year.
According to CoStar Group, retailers closed a record 102 million square feet of store space in 2017, but that number was smached in 2018 by closing another 155 million square feet. To sum up; that`s thousands of stores.
So far this year, 29% more stores
closings announced than last year, according to Coresight Research.
They tracked the 5,864 closings in 2018, which included all Toys R Us
stores and hundreds of Kmart and Sears locations.
This year, Sears are planning to close another 21 stores while Kmart will close «only» 5 stores in October. Kmart closed 48 stores earlier this year. That`s nothing compared to Walgreens’ 200 stores. Or Fred`s 442 with another 129 stores.
We have to keep in mind that some of
the retailers also are opening new stores while closing locations at
the same time. But……
The pain will continue for years to come. According to UBS, if the e-commerce penetration continue to rise up from its 16% level to 25%, about 75,000 stores need to be shuttered within a few years.
Home Depot has been a great stock for many years and the shares has gone straight up since 2010. This tells us a lot about the market. It`s really good. Home Depot is a home improvement retailer. The company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services.
New home sales came in strong in May and June this year which means people have jobs, wages and money. Just ask Home Depot.
Many companies have problems to compete with Amazon but Home Depot seems to do it well in this environment. But no brick-and-mortar player can take it all during the online retail competition. Home Depot saw that in July when Amazon and Sears found each other.
The stock Home Depot got hit last month by the news of the partnership between Amazon and Sears. It didn`t take much time for the stock to snap back and the same can happen during the next quarterly event.
Home Depot is expected to report earnings on 08/15/2017 before market open. The report will be for the fiscal Quarter ending July 2017. Earnings forecast for the quarter is $2,21. The reported earnings per share for the same quarter last year was $1,97.
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