Record Store Closings

[mia]

Source: Wall Street Journal

July 16, 2008; Page C10
Some 144,000 stores will close this year, up 7% from last year. That is the largest one-year increase in the 14 years that the International Council of Shopping Centers has tracked the figures.

The number is even more sobering considering that the ICSC up until now has been projecting 6,500 store closures this year. Why the big difference? The smaller number represents how many closings the trade group predicts will be announced, mostly by national retailers that are publicly held. The government data at the core of the new projection give a broader view of all store closings, including those by independent and privately held retailers that make up the majority of the U.S. store base.

The prediction bodes poorly for owners of malls and shopping centers. U.S. retail properties posted a hefty vacancy rate of 7.8% in the second quarter, according to market-research firm Reis Inc.

In context, there are more than 1.1 million retail establishments in the U.S., according to the 2002 census, the latest to track the figure. And the number of new stores opened each year often comes close to the number closed, even in tough times, the ICSC report says. In 2006, for example, 123,000 new stores opened and 139,000 closed. Store-opening figures aren't tallied until after the end of each year.



Read more: http://online.wsj.com/article/SB121615960074456109.html?mod=todays_us_stock_market_quarterly_review

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edit for spelling

[Pale Blue Dot]

1. Anecdotally, I'm seeing a lot of closings, very few openings.

A lot of the closings have been the very few small businesses left open. The only independently run stores that seem to be doing fine are the liquor stores.

[Warpy]

17. It varies by neighborhood and type of business

in my city. In the areas where trophy houses for yuppies were built and then sold to out of state speculators, strip malls are looking very empty and sad. The yuppies never materialized to take the houses off the hands of the speculators, who have long since defaulted. The ones left are mortgaged to the hilt and terrified their jobs are going to disappear. The stores that cater to their supposed pattern of consumption are going under.

That's because they all shop in my neighborhood, an area of thrift shops, dollar stores, and discount houses. Strip malls here don't have empty spaces often and the ones that appear don't last long. Payday loan and rent to own places are sprouting up like poisoned mushrooms.

[Dr.Phool]

22. I was down at my old carry-out restaurant yesterday.

I sold my share to my partner 4 months ago. In the last month, at least 5 other restaurants have gone out of business.

He's cut back on hours open, and employees. Just hanging in there.

[marmar]

2. .... and that might be a conservative estimate.

..... I've NEVER seen so much vacant strip mall space.

[daggahead]

11. What bothers me is ...

that so many of these strip malls that are almost completely empty were built on land that had trees, swamps, lots of life ... Maybe nature will reclaim it - someday.

[MuseRider]

16. The Wump World

http://books.google.com/books?id=7OVLn9anvUUC&dq=the+wump+world&pg=PP1&ots=1uapnyvR8C&sig=0Hb50Z0-1c1boCNXzKzQyvhf1HA&hl=en&sa=X&oi=book_result&resnum=1&ct=result#PPA44,M1

[depakid]

36. Or more importantly: productive farmland

that irresponsible land use (and/or corrupt) planners swapped for an unsustainable service economy.

[notadmblnd]

20. and they keep building more in my neighborhood

4 strip malls in the last 4 years and all 95% empty. The last thing I saw come and go from the closest one down the street was a prosthetic place. I guess they figured they'd make a killing with this war. But I've only seen a couple soldiers back from Iraq without legs. I don't know if more Michigan soldiers lose their life's rather than limbs or what?

[earthside]

3. I'm Surprised

I would have thought that all the record stores would have been long gone by now.

All I ever buy now are CDs or music downloads.

[loveable liberal]

4. I'm old and confused.

when I initially read this I put the emphasis on "record" and not "store". I thought to myself, "thats not news, there havent been record stores in years".

feh.

[merh]

5. I was going to post they stopped making vinyls a long time ago

Maybe the journalist that did this story (or the editor that gave it a title)is of the generation that doesn't know about "records".

[Chipper Chat]

8. Actually, vinyl is alive and well.

A lot of current artists release on vinyl (Weezer, Radiohead - many rappers). A reissued 'Abby Road' is currently the top-selling LP in stores & on the web. ANALOG VINYL JUST SOUNDS BETTER.

[Leftist Agitator]

38. "ANALOG VINYL JUST SOUNDS BETTER."

Um, no, it doesn't. It sounds different, sure, but different is by no means better.

Don't try to tell me that all of the popping and crackling inherent to vinyl makes music sound better.

[izquierdista]

39. That's ambiance

Popping and crackling prior to the song starting is what candlelight is to dinner.

[tismyself]

61. AHAAAA HAAAA HAAAAAAAAAA

gasp :rofl: wheeze

[Chipper Chat]

40. If you take care of your vinyl it won't pop & crack.

I challenge you to compare "Detroit Rock City" by Kiss on vinyl and then on CD. The CD sounds flat and lifeless.
CDs WERE A REPUBLICAN CONSPIRACY. (I just made that last part up)

[maxsolomon]

52. ugh

do not use Kiss as an example of high fidelity reproduction.

but yes, vinyl sounds better. especially if you clean it with:

[Chipper Chat]

55. Well, er, excuse me. I had the percussion vividness in mind

when I used the Kiss example. How about any of the Herbert Von Karajan Beethoven works on vinyl compared to the flat CD reproductions (if you are in the classical mood)

[boppers]

62. Bad recording, bad mastering.... well, it all *added* sound that wasn't actually there.

The warmth can be found in solid CD recordings as well, but the musicians have to create it themselves, rather than just relying on messy production techniques to do it for them....

[ryanmuegge]

58. What's wrong with a little good old '70s cock rock? That stuff is killer.

Kiss is classic rock and roll, baby.

[Lost4words]

41. clean vinal doesnt pop, sonny!

8643

[raebrek]

43. I seem to recall

That it popped for just a bit when the needle touched down. Of course a steady hand could limit that and the automatic onces pretty much killed the pop.

Raebrek!!!

[loveable liberal]

9. I'm glad I'm not alone....

:)

[galledgoblin]

48. I figured they meant music shops

which would make sense since so many download mp3s instead of buying CDs.

[n2doc]

6. Must be all in their heads

I mean, the economy is all right, according to the MSM...now they wouldn't lie to us, would they?

[HereSince1628]

12. Yeah, this is just more of that whimpering whinerdom

that Gramm was talking about. Culling the herd is a good thing.

[xchrom]

7. recommend

[Jack from Charlotte]

10. "Nobody buys records anymore... cassette tapes is the new thing".....McCain.. nfm

*

[daggahead]

13. McCain just ditched his Victrola. n/t

[hunter]

23. I'd have thought McCain was an Edison Cylinder kind of guy...

That's what people listened to when Teddy Roosevelt was President.



http://en.wikipedia.org/wiki/Phonograph_cylinder

[happyslug]

28. You can still buy Victrolas, nothing like a Breakable 78rpm Record

Some sites:
http://www.victrolarepairservice.com/sales.html
For only $550:

http://www.victrolarepairservice.com/Sales/brunswick.html


http://www.wyattsmusical.com/

http://victrolarepair.net/repair.aspx

http://www.billsclockshop.com/victrola.html

Some others:
http://www.google.com/search?hl=en&q=Victrola+Repairs&btnG=Google+Search

[yardwork]

31. I heard he just invested in an eight-track

[tismyself]

14. old and in the way

I clicked on this subject because I too thought it was about records... lp's.

Good grief.

In some, make that most, of the small rural areas I travel through, even the big name brand places are gone. The one that surprised me the most recently was a gas station that had been around forever, just gone.

[Hugin]

21. Haha! Me too...

Thanks for the chuckle. :hi:

[Lorien]

32. Make that three of us

"and here I though that Peaches stores were already closed"! :P

[TreasonousBastard]

15. OK, so in 2006...

139,000 closed, but they don't say how many were chain stores, and this year 144,000, of which 6,500 will be chain stores. (Including those Starbucks closings?)

So, if we (dangerously) assume that not that many chains closed stores two years ago, most of the new closures will be chain stores.

This is not necessarily such a horrible thing-- most chains overbuilt for years and shaking out the empty stores has to happen occasionally.

Same thing with strip malls-- incredible amounts of overbuilding over the years.

[grilled onions]

18. With All The Strip Mall Vacancies

why do we see even more good land being squared off for even more potential strip malls? There should be a law in every community that no new malls could be built if there are a lot of vacant store fronts in existing malls.

[bikesein]

24. I agree

In theory at least, I am not sure how to put it into effect in practice. More land is used up to build big , flat shopping areas that have large areas of parking lots that sit empty 80-100% of the time. Meanwhile closer in to the urban areas large shopping areas sit empty. The pattern keeps repeating itself. If nothing else force these new developments to build up and keep some green space, rather than building out far and wide taking up space that will simply support a parking lot.

[MetaTrope]

19. Went to Century Centre in Chicago's yuppie haven of Lincoln Park to see a movie yesterday

A compact upscale mall, 7 stories covering half a block, that's been operating for decades. Well, it looks like 1/4 the shops are shuttered now, and the food court is gone. And we're talking the middle of urban affluence here.

[Skink]

25. Barnes and Noble is the most coveted retailer for new development....

and the business plan now is to open only in upscale luxury developments. No more strip malls. Any stores slated for closure are in strip malls.
Starbucks is probably doing the same.

[David__77]

26. I'm sure these are concentrated in certain regions.

Like my region of Sacramento, CA. I believe it would be proportional to local sensitivity to the housing/credit bubble bursting, as well as changes in employment levels.

[TCJ70]

27. I like the ads that come up with this story...

..."Transfer your records/LP's to CD's!"

[MorningGlow]

29. We are very fortunate to have three independent "record" stores in our area

I don't think I could bear to see even one of them go. :cry:

http://www.houseofguitars.com/

http://www.bopshop.com/main/

http://www.recordarchive.com/index2.asp

[JustAnotherGen]

54. Your in The Roc?

Cool. I moved down to NJ 2.5 years ago (couldn't find decent work in the area) for a job. I miss The Hog and Record Archive. I even miss the Record Archive dopey commercials that used to come on Channel 31. :-(

[MorningGlow]

56. Well, just south right now

I'm in Caledonia, but I grew up in Irondequoit and of course did my "single chick" time in the Park/Monroe area (didn't everyone?) so I spent many (MANY!) long hours and many dollars (MANY!) in the Hog and, later, Record Archive.

Oh man, the Record Archive guy dancing around in a record costume...! Dopey indeed, but not as inspired as the Hog commercials--"I am the real Easter Bunny. Hop hop."
:rofl:

[JustAnotherGen]

59. Oh God!

:rofl:

I forgot about the bunny . . . Oh - BTW - Grew up in Scottsville! :-)

[MorningGlow]

60. Cool!

I love that town--drive through Scottsville all the time and admire the houses in the historic district. Taking my car to Fred's Garage on Wednesday for an inspection! :)

[DainBramaged]

30. And they are still building strip malls on very vacant parcel of land around here

One sat vacant for over 20 years until one of the hospitals made it an out patient facility

[cyberpj]

33. Pushing more and more people to use Walmart due to lack of other choices. nt

[Imagevision]

34. Disneyland, theme parks, tourist spots don't seem to be affected...?

[Zhade]

44. Oh yeah, they are. I took my kid to Disneyland recently.

Practically dead.

[Wednesdays]

35. There is hardly a strip mall without at least one empty suite around here

And this part of the country is supposed to be faring the "best" in this economy so far. I can't even begin to imagine what it's like in places like Flint, Michigan.

[rocktivity]

37. As long as Vintage Vinyl in Woodbride NJ doesn't close

That's my favorite record store...but I suppose iTunes and filesharing are to blame...

:crazy:
rocknation

[ninety lives]

46. I like used CD shopping....

A lot of stuff isn't easily available on mp3, or the mp3s sound a bit different than the CD. Stores that offer a range of prices or even used offerings are more attractive to me. We don't have a decent used CD place in my area anymore. :(

I also like the serendipity of CD shopping.

We're probably in a phase where we're only beginning to learn what is "workable" in terms of retail and the economy.

Me, I like getting out of the house once in a while to see what's on the sale racks.

[customerserviceguy]

42. Let's face it

what did the average store of a decade ago sell? Crap. The same crap that you could find at three or four similar stores within a mile radius. Ten of them, if its trendy clothing.

Tough times mean that people have decided they can do without the junk these places sell.

[Ian David]

45. Stores are closing and becoming non-tax-paying churches. n/t

[Psephos]

47. One obvious answer is the explosive growth in online sales

I use Amazon Prime. For $79/yr, I get free 2nd-day delivery and no sales tax on anything I buy, regardless of price or quantity. I buy more from them than from all brick-and-mortar stores combined, except for groceries and produce. No time wasted, no gasoline, no hassle, and I can shop 24/7.

I'm surprised the impact of online retailers wasn't explored in the article.

[galledgoblin]

49. I wonder if shops in malls are closing at a higher rate than

shops on main streets- just my observation, but the shops in the central downtowns seem to be doing well right now despite the downturn.

are we seeing the end of the suburban-car culture?

[mia]

53. I've been reading about how suburbs won't fare as well

in coming years due to the increased costs of commuting. It's good to be within walking or biking distance of everything necessary.

[Demeter]

57. Rent Is The Killer

Malls are just great big rent-sucking vaccuum cleaners. Downtown stores are usually bought and paid for. Much lower overhead.

[democrat2thecore]

50. Send out another round of "stimulus" checks!!!! :-)

[patrick t. cakes]

51. was in portland oregon

not long ago. walked through a neighborhood
with two record stores caddy corner from one another

portland is the best :headbang: