A RETAIL expert has warned of the significant economic and social impacts of store closures in several US cities.
Johnny Custer, senior director of retail risk services at ThinkLP, spoke to The US Sun about the deleterious effects of the retail apocalypse.
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ThinkLP is a consulting firm that helps large and small businesses with back-end issues such as theft, cost reduction, and internal investigations.
Custer revealed that his analysis of hundreds of major retailers left him concerned about the future of several US cities, including Chicago.
Historically, cities have attracted thousands of customers looking for unique shopping experiences. But as iconic stores close, Custer believes cities will undergo seismic social changes.
“We see a ton [of store closures] in Chicago, from the Magnificent Mile to downtown Chicago,” he told The US Sun earlier this year.
Read more about the Retail Apocalypse
“I think it affects the entire community.”
The windy city made headlines when several major shopping destination brands announced closures last year.
Custer said the emptying of storefronts could have an impact on tourism.
He warned that fewer people visiting a city for in-store experiences could mean less money for people living in the city.
“Now, you’ve taken away a destination where people can walk to get their things or take a short trip to get what they need,” he said.
“It created a huge inconsistency or huge inconvenience in the neighborhood. Furthermore, it has a negative impact on the neighborhood.”
In turn, fewer companies are willing to invest in cities if they see a series of store closures.
Custer also pointed to Detroit, Cleveland and San Francisco as other major cities that have seen dozens of downtown store closures.
Many big brands have abandoned brick-and-mortar operations as a growing number of consumers shop online.
However, other retail analysts noted that while big-name store closures dominate economic headlines, other trends are showing more positive signs for in-person shopping.
There were more retail opening announcements last year than closure announcements, according to Commercial Research.
While some cities have seen an increase in high-cost retail store closures, the US is currently experiencing an all-time low in commercial vacancy rates.
Anti-theft measures implemented by retailers
Retailers in the US and Canada have implemented strategies designed to combat theft. The US Sun has compiled a list of measures that have been implemented in stores.
- Lock items in cabinets.
- Safety stakes.
- Security cameras.
- Signs warning about the impact of theft.
- Receipt scanners.
- Receipt checks.
- Carts with locking technology
ROBBERY SCARES
Custer added that reports of series of crimes have increased fervor around store closures.
High-interest thefts, such as “flash robots,” with dozens of people stealing items at the same time, have raised fears around the stores’ economic legitimacy.
Retailers also projected they will lose a record $132 billion to theft this year, according to Capital One.
Record theft projections helped persist industry fears.
However, there are few data-sharing operations between retailers that allow for any fact-checking of theft projections.
Still, the impact of high-profile theft operations has changed the retail environment for all shoppers, Custer said.
He added that large stores like Walmart and Target have implemented the necessary anti-theft technology to help curb the problems.
This story originally appeared on The-sun.com read the full story
