News hit the streets this afternoon that Blockbuster may close as many as 960 stores by the end of next year. The fact that the chain is struggling and management plans on shutting stores should not be terribly surprising to anyone. Netflix, Redbox kiosks, and Internet downloads have all cut in to Blockbuster’s market share. Since the early days of the Internet boom, analysts have predicted that Blockbuster’s business model would have to change dramatically if it were to survive. Even if Blockbuster successfully adapted, the face of the company would be dramatically different.
The news of more potential store closures is a reminder of the particularly precarious times landlords have faced over the past 2 years. Not only have owners seen the repricing of even healthy assets by as much as 30% to 40%, but tenant losses continue to mount with no predicable end in sight. Today, I set out to compile a list of store closures already experienced this year and found this list instead on David Bodamer’s blog “Traffic Court.” I will let the list speak for itself, but the sheer enormity of the number of store closures from various national and regional retailers is staggering.
