Good Lifestyle

If you haven't even started your vacation purchases, you really cut it. Hanukka begins in just two days, and Christmas and Kwanzaa approach quickly. Department stores are a reliable favorite when it comes to getting something for everyone on your list - you cannot beat the convenience of one -way shopping. But analysts warn that this could be the last year that you can buy in your local department store of choice, offering a disastrous prediction of what will come for major brands like Kohl's and Nordstrom. Read more to find out why these companies are at risk of major closures, according to the latest data.

Read this then: The chains of beloved shopping centers, including Dillard's, are closing stores, from December 31 . AE0FCC31AE342FD3A1346EBB1F342FCB

According to The New York Times ,, retail sales In November, dropped by 0.6% compared to October. It may not seem much, but consider that November has the biggest days of shopping of the year - Black Friday and Cyber Monday - ending the month. This apparently minor decline in fact highlights a significant decrease in discretional expenses (buying non -essential items). Americans are still prey to inflation, even if rates went from 7.7% to 7.1% from October to November.

The struggle is real, and it has been doing it for some time. The retailers closed the stores even before the pandemic cochemiah, when online purchases proved to be a major threat for brick and mortar stores. Since 2015, the "Apocalypse Retail" has sent 141 companies bankrupt , Business Analytics Company CB Estimated Insights. During the height of the pandemic in particular, 1,800 American stores were closed, according to UBS estimates, reported Insider.

And we are not yet out of the woods, because the largest retailers are faced with imminent closures, which could start next year.

The chains of national stores are likely to lose brick and mortar locations, predicted USB analysts. There are growing fears of a recession, which would seriously have an impact on sales of these "intermediate level retailers", reported Insider.

"These trends are probably not good for department stores, because the two luxury companies as well as for retailers at reduced prices in competition directly with department stores", UBS analysts Jay Sole ,, Mauricio SERNA ,, Shoshana Pollack , and Tiffany Agard wrote. "We expect department stores to close the locations as the challenges persist."

Analysts did not specify the number of department stores on blocking, but the closures in the next five years could be astounding. In April, UBS predicted that anywhere between 40,000 to 50,000 The retail stores would close by 2026, reported CNBC. This number was down compared to the 80,000 closures planned in 2021, but it is still important.

Department stores are more at risk, according to CNBC, because they are located in shopping centers, which has decreased in popularity in recent years. And this list of department stores in danger includes historical and renowned brands Kohl's, Nordstrom and Macy's.

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The store closings during the apocalypse retail sale in fact benefited the stores that were able to hold it and survive. These retailers experienced a drop in competition and were then able to generate sales by adding new services and partnerships, as well as smaller stores And stores at reduced prices like Macy's behind the scenes.

According to Insider, store closings have stabilized since 2021, but on the current market, Nordstrom and Kohl are "left with too many stores while consumer spending decreases". The two companies reported higher sales in half until 2022, but this boom has since slowed down.

During their respective third quarter profits calls, these retailers said less sales in October and November, compared to the same period in 2021, Insider reported.

Better life contacted Nordstrom and Kohl with regard to potential closure plans, but has not yet heard.

In September, Mark Cohen , the director of retail studies at Columbia University, said to Insider that department stores Regular consumers spend less , as richer customers are more likely to search for a dollar stores and good deals like Walmart and T.J. Maxx.

This is illustrated by reports that more average and high income buyers are heading to Dollar General and Dollars tree stores , who both reported Higher sales In the second quarter they had had the previous year. Consequently, stores like Kohl's and Nordstrom which operate the luxury and affordability line are in a pickle.

"These community actors, the environment with better players like Macy's and Nordstrom, are a bit trapped," said Cohen. "I suspect that there will be a whole series of restructures, bankruptcy, all kinds of upheavals, while we are approaching from the end of the year until next year."