Many retail chains in the United States have come under fire as the economy crumbled around them. As food and fuel costs drained disposable income, many companies have been forced to liquidate their assets and file for bankruptcy, according to The Los Angeles Times.
The liquidation and clearance sales of Mervyns, Linens’n Things, Shoe Pavilion, and other department stores offer great short-term bargains for shoppers, but come at the price of serious long-term decline. Mervyns, a store which has been in operation for 59 years, promises a massive going-out-of-business sale in hopes of capturing some of the holiday shopping season. By January 1, 2009 most of its employees will be out of work.
The collapse of these stores comes at the heels of other bankruptcies in the retail world. Sharper Image Corp., Wickes Furniture and Levitz Furniture closed earlier this year and most experts expect closings to continue into the future. With retail sales down and wages slipping, most department stores cannot afford to compete with big-box multinationals like Wal-Mart and Target.
Americans have been hit hard at the gas pump, in the super market, and in their regular paycheck. Coupled with the dramatic decline in the stock market, these factors have sapped the amount of money which could otherwise have been directed into retail and other areas. Retailers aren't the only ones being hit by the spending crunch, auto sales are down across the board for almost every make, model and manufacturer.
For an economy largely dependent on strong consumption, the prolonged slide has severely weakened many companies. Entire industries, like retail and automotive, have begun sinking with no clear end in sight. The government is still unsure as to how it will deal with the economic crisis; in fact the government is still unsure whether or not they are willing to use the term “recession” as if the reality of the situation has gone unnoticed by most Americans.
Source The Los Angeles Times
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After 59 years in business, the Mervyns department-store chain called it quits Friday -- promising a huge going-out-of-business sale just in time for the holidays.
And there is plenty of competition for a close-out Christmas. Linens 'n Things Inc. began a liquidation sale Friday, and Shoe Pavilion Inc. starts one this weekend, according to firms that said they were hired to liquidate the stores. … As the economy's decline continues to batter Main Street, shopping centers and strip malls across the nation are becoming home to empty storefronts among the holiday decorations. On Wednesday, the government announced that retail sales had slumped the most in three years |
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