- Overall retail space could be reduced by between one-third to one-half over the next ten years, forecasts industry watcher Michael Burden.
- The harsh assessment could indicate the round of store closings from Sears Holdings (SHLD), J.C. Penney (NYSE:JCP), and Macy's (NYSE:M) is only the tip of the iceberg. Watch for American Eagle Outfitters (NYSE:AEO), Aeropostale (NYSE:ARO), Dillard's (NYSE:DDS), Nordstrom (NYSE:JWN), and Kohl's (NYSE:KSS) to enact some logical downsizing, while even Wal-Mart (NYSE:WMT) and Best Buy (NYSE:BBY) could surprise with some paring.
- Analysts think stores at malls will be shuttered faster than open air outlets.
- What to watch: Vibrant brands such as Michael Kors (KORS), Lululemon (NASDAQ:LULU), and Vince (NYSE:VNCE) could shift into a standalone mode as consumer demand stays strong for their on-trend products, but mall metrics trend weaker.