The Collapse Of US Retail Business Is Continuing.

Although the US economy is still strong and consumer confidence has been greatly boosted, according to the latest report by Reis Inc., a real estate data company, the United States

The vacancy rate hit a six year high in the first quarter, compared with 8.3% in the fourth quarter of last year, rising 10 basis points to 8.4%.

Of the 77 regions surveyed by Reis Inc., 44 of them increased the vacancy rate of shopping centers in the first quarter, while the vacancy rate rose and the consumption pattern changed, especially in the case of Amazon.com Inc. (NASDAQ:AMZN).

The failure of competition has led to the rise of retailers who have gone bankrupt or even bankrupt.

According to the world clothing shoes and hats net, in the first quarter, the United States

The tide of bankruptcy is still continuing, and nearly 20 well-known large retailers have declared bankruptcy, including the largest regional department store Bon-Ton Stores Inc. in the US and Claire s Stores Inc., a jewelry retailer.

After the Reis Inc. report was released, the rating agency Moody's Investors Service Moodie Investors Service reported that in the first quarter of 2018, the retailer default rate was too high to afford suppliers' arrears.

According to Moodie's report, a total of 28 defaults occurred in the first quarter of its research range, far higher than 23 in the same period last year.

In the first quarter, 9 of the companies were retail enterprises, including Bon-Ton Stores Inc., Stores Sears Holdings, Claire's Stores, Tops Holding, BI-LO, Tops, Sears, and Sears.

The retailer's default is mainly due to a large amount of debt in early acquisitions, and at the same time, it must compete with Amazon and invest heavily in online businesses.

These two extreme cash flow strategies can easily dry up the liquidity of retail businesses, and are eventually forced to apply for bankruptcy reorganization to reduce their debts.

Moodie said that the retailer's default may not have reached its peak, because 2019 is the peak period for the maturity of retail debt. The agency expects that there may be Sears Holdings, Neiman Marcus, FULLBEAUTY Brands, David's Bridal, TOMS Shoes, Indra, FULLBEAUTY, Brands, David's, and so on this year.

While Donald Trump Trump launched a trade war with Twitter twitter, another important action was to bombardment of Amazon. At the end of March and early April, he launched a three time push in a week, criticizing USPS (US Postal Service, Postal Services Corporation) to provide $1.5 per package for Amazon. If USPS increases the cost of the package, Amazon will increase its annual pportation cost by $2 billion 600 million.

Trump criticized the world's largest electricity supplier, which has suffered losses in the United States, and has paid very little tax or even no pay to state and local governments, which has led thousands of retailers to go bankrupt.

Reis Inc. said that some small businesses which rely on the retail industry to stimulate employment and tax revenue will be severely affected by the impact. The vacancy rate of the community shopping centres in the first quarter is 10%, an increase of 10 basis points compared with the same period last year, with a flat ratio, of which Indianapolis's vacancy rate reached 15.5%, up 120 basis points from the same period last year.

More interesting reports, please pay attention to the world clothing shoes and hats net.