In 2015, Sears sold a portion of its real estate holdings to Seritage (SRG), a newly formed real estate investment trust (REIT) owned by existing Sears shareholders, in a $2.7 billion sale-leaseback transaction. The real estate holdings consisted of existing Sears retail locations, and as part of...

Amazon’s announced acquisition of Whole Foods for $13.7 billion 1 is yet another sign of continuing competitive challenges faced by traditional supermarket chains. The Whole Foods acquisition brings Amazon a 468-store footprint, a fresh foods supply chain, new sourcing capabilities, and a strong...

It’s not news that traditional retail has been undergoing a sea change for quite some time, as evidenced by the growing number of big names that have been forced to downsize or close altogether in the past few years. Rue21 and Payless Shoe Store have each closed 400 stores so far this year...

Bankruptcy filings by retailers in the first half of 2017 were on a record-setting pace, with 15 Chapter 11 filings in just the first six months of the year ( Figure 1 ). This exceeds the number of retailers that have filed for bankruptcy in any full year since 2009, and there is a significant...

The retail sector continues to make headlines, with news of store closures and liquidations dominating the media. Factors contributing to this turmoil include: The vastly overstored and overspaced U.S. retail environment Globalization and the invasion of sophisticated international retailers The...

By now, it has become cliché to say that mall anchors and in-line specialty stores are in a state of contraction, that the digital sales channel is cannibalizing revenue that formerly went to the brick-and-mortar channel. “Retail restructuring” has almost become an oxymoron. With rare exceptions,...

Leading retailers have long focused on internationalizing their businesses as a means of growth and diversification. In fact, two-thirds of the world’s foremost retailers have operations outside their home markets. However, broadening the geographic footprint and replicating success in multiple...

Through innovative products and experiences, retailers have historically harnessed change to their advantage. However, there has been a paradigm shift, and retailers are now undergoing a phase of disruption of their own that is forcing them to change how they do business. Many forces have...

Today, the customer actually is in charge. The seismic shifts in the consumer landscape have produced the “ultimate consumer”—not a demographic group defined by age but rather a mindset and set of expectations. Empowered by technology, embracing disruptive new models, and actively exploring an...

The state of brick-and-mortar retail in the United States is dismal. Companies are firing workers, closing stores, and filing for bankruptcy. In-store customer traffic is down, while online purchases are up. For big retail chains, the situation will worsen before it improves. Many retailers have...