Retailers hold on to stores, hoping for a surge of shoppers
A surge of expected store closings early this year hasn’t materialized after strong holiday sales prompted retailers to hold on to their leases in hopes of a shopping rebound. “It wasn’t the wave everyone thought it would be,” said Ryan Mulcunry, a managing director at B. Riley Financial who advises retailers. Last year, retailers announced plans to shutter a record 12,200 stores, according to CoStar Group. But some are now reconsidering after larger holiday revenues and ready support from lenders gave them more breathing room, Mulcunry said. Holiday sales jumped 8.3 percent in November and December compared to a year earlier, according to the National Retail Federation, easily beating an expected gain of 3.6 percent to 5.2 percent. Troubled retailers traditionally have sought to restructure their debts — which can include filing for bankruptcy and closing locations — early in the year when they are flush with cash following the holiday season. Even this year, not all retailers have been spared.
Retailers hold on to stores, hoping for a surge of shoppers
A surge of expected store closings early this year hasn’t materialized after strong holiday sales prompted retailers to hold on to their leases in hopes of a shopping rebound. “It wasn’t the wave everyone thought it would be,” said Ryan Mulcunry, a managing director at B. Riley Financial who advises retailers. Last year, retailers announced plans to shutter a record 12,200 stores, according to CoStar Group. But some are now reconsidering after larger holiday revenues and ready support from lenders gave them more breathing room, Mulcunry said. Holiday sales jumped 8.3 percent in November and December compared to a year earlier, according to the National Retail Federation, easily beating an expected gain of 3.6 percent to 5.2 percent. Troubled retailers traditionally have sought to restructure their debts — which can include filing for bankruptcy and closing locations — early in the year when they are flush with cash following the holiday season. Even this year, not all retailers have been spared.