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Shops Shut as Wind Goes Out of Sales

Store closings rise along with gas prices, foreclosures

By Zach Samalin, Newser Staff

Posted Mar 11, 2008 3:59 AM CDT

(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.

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)

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)

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)

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Shops Shut as Wind Goes Out of Sales

Store closings rise along with gas prices, foreclosures

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Staggering Slowdown Hits Retail Sales

Ominous sign of dismal holiday season

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Retailers add revenue when they're used, but states want their share

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Recession isn't over as far as consumers are concerned

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Shops Shut as Wind Goes Out of Sales

Store closings rise along with gas prices, foreclosures

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OTHER STORIES ON OUR RADAR

recession • US economy • gas prices • retail sales • retail stores • retail shopping • housing crisis • weakening economy • shoppers

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Staggering Slowdown Hits Retail Sales

Ominous sign of dismal holiday season

States, Sellers Drooling Over Gift Card Sales

Retailers add revenue when they're used, but states want their share

Recession Worse Than Thought; GDP Growth Weak

Economy grew just 1.3% over past three months

Sales Rise Even Though Shoppers Spend Less

$41.2B weekend total beats 2008 haul by $1.2B

Lousy Retail Sales Will Delay Recovery

Recession isn't over as far as consumers are concerned

About Us

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Newser By Users

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What is Newser?