Financial Analysts Don’t Like the Retail Space Anymore: “Here’s Why Every Mall Is Doomed”

The financial forecasting site Daily Reckoning is spelling out what industry analysts have known for some while. Malls are in big trouble and it starts showing in the retailers’ stocks:

All the major mall anchors are coughing up their November gains at an alarming rate. Nordstrom Inc. (NYSE:JWN) took the biggest hit Friday, dropping nearly 9% after a JP Morgan downgrade. Macy’s and JC Penney followed suit, each dropping 7% to finish out the trading week. […]

The slow-motion collapse of the traditional retailers is starting to pick up steam. As this story continues to unfold, the retail sector is becoming a wasteland. Jeff Bezos and his army of same-day Amazon delivery drivers have gutted every brick and mortar store in their path. Derelict shopping malls dot the country. It’s not a pretty picture. […]

Steer clear of the retail space for now. You never know where Amazon will strike next…

A mall is like a house of cards. Once the anchors struggle everyone else gets hurt as well. The decline will not progress in a linear fashion.

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