Posts Tagged ‘shopping malls’

Will Retail Shoppers Prove Analysts Wrong On The Retail ETF?

October 22nd, 2009

shopping“Despite a weak economy and a growing fear that consumer spending remains slow, the retail sector is proving to be an impressive hot spot within the market Read more…


Profit From America’s Empty Shopping Malls With These ETF’s!

May 19th, 2009

empty-shopping-cartWhile having lunch with my mother yesterday, she told me she’s never seen stores and malls so empty. And she should know – shopping is her favorite pastime.

But you don’t need the keen insights of Mrs. L. to know that the retail sector is struggling big-time. Many malls and shopping centers have more vacancies than they’ve ever had.

With unemployment headed towards the double-digits and the personal savings rate quadrupling since 2007, this is hardly surprising. There’s simply a lot less money sloshing around the retail sector. And this is having a negative trickle-down effect on a couple of other sectors…  Commercial real estate is in trouble. Perhaps more trouble than the housing market was when it started its slide.  Consider this:

Delinquencies in retail office space have doubled over the past six months. And they’re up 80% in apartments and industrial buildings.
Commercial loan delinquencies have risen from 1% to 5% in the past year. General Growth Properties (Pink Sheets: GGWPQ), second-largest mall owner in the U.S., recently became the largest U.S. real estate bankruptcy in history. 
Simply put, commercial landlords are in a jam. With fewer customers patronizing their properties and major tenants closing up shop, there aren’t many options to improve their businesses. After all, it’s not easy to replace a big-box retailer like Circuit City. And the loss of that store leads to declining traffic at the other retailers in the mall.  Read more…


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