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May 17, 2008 12:40:08 AM CDT

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Shops Shut as Wind Goes Out of Sales  

Posted Mar 11, 08 3:59 AM CDT in Business    Editor's Choice

(newser) – Soaring gas prices and a still-boiling housing crisis are taking their toll on America's smaller retailers, with store bankruptcies and vacancy rates rising steadily as customers avoid impulse-buys that once fueled the industry's rapid expansion, reports AP. Vacancies hover between 7% and 8%, up from 5% just six months ago—and some analysts predict rates as high as 12.5% by the end of 2008.

Following on the heels of a years-long period of booming expansion, the industry is now digging in to weather the storm. "This is economic Darwinism," said one analyst, predicting retail bankruptcy rates will reach highs not seen since the 1991 recession, with stores like the Sharper Image and furniture chain Bombay Co. leading the way.

Source Associated Press

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Shops Shut as Wind Goes Out of Sales
Empty retail space is all that remains of a Bombay Company story at the Town Center Plaza shopping center in Leawood, Kan., Friday, Feb. 29, 2008. Around the country, mall centers are starting to feel...   (Associated Press)
Shops Shut as Wind Goes Out of Sales
A vehicle drives past empty retail space at the Town Center Plaza shopping center in Leawood, Kan., Friday, Feb. 29, 2008. Consumers who are closing their wallets amid rising gasoline prices and a housing...   (Associated Press)
Shops Shut as Wind Goes Out of Sales
Consumers who are closing their wallets amid rising gasoline prices and a housing slump are forcing specialty retailers to pare back their brands and pack up shop.   (Associated Press)
Shops Shut as Wind Goes Out of Sales
Empty retail space is all that remains of a Bombay Company story at the Town Center Plaza shopping center in Leawood, Kan., Friday, Feb. 29, 2008. Around the country, mall centers are starting to feel...   (Associated Press)
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US economy  • recession  • housing crisis  • gas prices  • retail sales  • retail stores  • retail shopping  • weakening economy  • shoppers


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