Obama’s Economic Recovery Results in More Store Closings

The Obama administration has been trying to convince us for the past couple of months that the economy is recovering.  One of the signs of a recovering economy is consumer spending.  Increased consumer spending generally means that retailers begin to see more sales and business is improving.

However, that’s not the case with many major retail chains.  In fact, they continue to see poor sales figures and loss of profits.  Last year, J.C. Penny Co. saw quarterly losses of 26% compared to the same quarters a year earlier.  Kmart and RadioShack have been closing stores because of lost sales and revenues.

In an analysis by 24/7 Wall St., a number of major retailers are expected to start closing more stores this year.  Those are:

  • Best Buy – estimated closing of 200-250 stores.
  • Sears Holding Corp – estimated closing of 175-225 Kmart stores and 100-125 Sears stores.
  • J.C. Penney – estimated closing of 300-350 stores.
  • Office Depot – estimated closing of 125-150 stores.
  • Barnes & Noble – estimated closing of 190-240 stores.
  • GameStop – estimated closing of 500-600 stores.
  • OfficeMax – estimated closing of 150-175 stores.
  • RadioShack – estimated closing of 450-550 stores.

If their predictions are accurate, that means that between 2,090 to 2,665 stores will be closed this year from just those 8 companies.  How many other chains, large and small or just single stores are also going to be closing their doors?  How many thousands of people are going to lose their jobs this year because of the economy?  How many other businesses that supply products to these stores will lose business and have to shut down or layoff people?

Many people don’t realize that when a large store closes its doors, it’s not just those employees that lose their jobs, but it affects every other business that they do business with.  The companies that supply the merchandise and materials will also lose that amount of business.  The city, county and state also loses tax revenues.  The utility companies lose revenue and so on.  The effects are far reaching and when you start talking about over 2,000 stores closing, those effects are greatly magnified.

Have you walked through the mall in your area recently?  How many small or large stores did you see that were closed and empty?  Drive through parts of town and look at how many stores in the smaller strip malls have been vacated.

I don’t see these things as being signs of a recovering economy, but signs of an economy that is still struggling and falling.  The Obama administration may try to cover the truth with smoke and mirrors, but in the end, the empty buildings and unemployed Americans will tell a much different story than what we are being led to believe.







Comments

comments

Posted in Business, Economy, Employment Tagged with: , , , , , , , , , , ,
  • http://www.facebook.com/profile.php?id=1315515107 Alan Smith

    Probley another two million people out of work when plain labor jobs are gone. Somehow this is good for the economy?

  • http://www.survivingurbancrisis.com/ Silas Longshot

    No matter how much glitter they dump on it, how much they call a t-rd a pound cake, nor how pretty a picture they paint, this economy is still a crock o’sxit, and king zero’s policies will continue, as planned, to crash this economy so that we may be ‘rescued’ with Marxism.

    Prepare while you can.
    Surviving urban crisis.

  • gingercake5

    Manufacturing led the way out of our last Depression. But we have no manufacturing left. They’re relying only on consumer spending, and you can see that’s making businesses fail. Check shadow stats and you’ll see we’ve been in a depression for quite awhile.

  • had it with o

    well someone liked his him they voted him back in so now they get what they deserve

  • ste1021

    The voters re-elected Obama who is giving us a passive, bankrupt, socialist state whose population is dependent on the government for its existence. Nice going, voters.

  • Frank_O

    If despite the trillions of dollars spent by the Federal Government on “stimulus” & bailouts & everything else the GDP “grew” only about 2% & last quarter went negative (a -0.1%), then we never really came out of the Recession & we are still just bumping along the bottom. Why? Because if you subtract the artificial boost to the GDP numbers from the deficit spending, probably ALL the GDP quarterly numbers since Obama took office would be negative! In fact, because of the sky-rocketing debt, our economy is probably in much worse shape now than when Obama too office. Some time in the not too distant future, the American economy & US Dollar will implode. Economic reality will set in. Once again, big government, Keynesian economics (as opposed to small government, Austrian economics) has failed. When it implodes this time, the whole world will shake because the US Dollar is the world’s reserve currency. Everyone around the world with worthless paper US Dollars will be very, very angry at us. Who knows what will happen then!

  • figment

    Further Destruction to our economy:

    –mandating that 1/2 our food goes into our gas tanks;

    result, truckers are having to replace equipment at 1/4 life, due to no sulfur and algae/water in the fuel killing engines.

    Did you know the ACA (the Unaffordable Care Act has a 12.5% TAX on new trailers? And OSHA and new DOT regs lay in wait for truckers in order to fine them for non-compliance on unattainable safety standards. Large trucking companies are having to decide whether to replace equipment or scale down business.

    Back to that ethanol mandate: because of the drought of 2012, corn infected with aflatoxin was ok’d by the FDA to be introduced into the food supply. EPA won’t suspend the ethanol mandate although corn supplies show that they will run out before the next crop. Large numbers of livestock were culled due to the inability to feed them this winter. I’m not sure anyone still farming will be able to afford crop insurance this year. (Aflatoxin is responsible for the Diamond pet food recall of 2005)
    Back to farmers: due to several food borne outbreaks of disease, MORE regulations on farmers, inspections by multiple agencies in order for farm hands to be educated in WASHING THEIR HANDS, although MOST foodborne illness is a result of contamination at the transport, or packaging level, or processing (like the peanut butter -salmonella outbreak) Or from incorrect fertilization from 3rd world countries. Who do you think is going to pay for this? all of us, in our food prices which are already skyrocketing.
    This isn’t incompetence, this is the non violent Fabian socialist takeover of our country. After the economy crashes and burns, who will be there to rebuild it in the new model?
    Scary days we live in.

  • http://www.facebook.com/profile.php?id=1025500368 Rick Eastlund

    This dimwits plan is blame Bush, then Blame Bush some more, then blame congress, then blame the people who work, eventually he will get around to blaming the deadbeats.

  • Ashley

    :( no gamestop…..

  • marineh2ominer

    I sincerely hope the trend of failures continues just to pay back all the a–holes that re-elected him . A total collapse would demonstrate just what government run amuck does for a nation .

  • Micky Talon

    OBAMA inherited a mess from Bush so its going to take time to straighten all this out. We should all thank god that we have such a great leader.

    • http://www.facebook.com/andrew.m.sova Andrew Michael Sova

      It’s been 4yrs since the bum took office, quit ranting about how he’s trying to fix Bush’s problems. Go educate yourself.

    • floridavet

      You’re an idiot to believe this moron we have as President will ever straighten anything out. He is a loser who never ran a business, never served in the military and his foreign policy consists of sitting around the campfire and trying to harmonize Kum Ba Jah with people who are trying to decapitate you. If you truly believe he is a great leader, you are truly deceived.

  • catman

    This clown has never had to meet a payroll, nor has he ever ran a business. I seriously doubt if he could operate a lemonade stand profitably. He hasn’t a clue as to business operations and economics.
    Hows that “fundamental change” working out folks ???? “Change we can believe in” I think he said when running for office. I believe it !!! Just don’t like it one damned bit !!!

  • lfhpueblo

    I think the years 2016 and 2017 will be really horrible, because I think corruption will still be roaring full force even then. I think the fraudulent election kicked it into full trottle and it’s just keeps picking up speed.

  • http://www.facebook.com/people/Billy-Whitfield/100002738915761 Billy Whitfield

    Obama always threatens SS and Vets with no checks, how about Obama and Congress not getting paid until they get off their worthless butts and get our country going again. No Paychecks for Congress or Obama! They all got rich screwing We, the People, and if they love their job and county, they would willingly give up their checks until they do their jobs. Sadly, most could care less about our nation or it’s people!

  • http://www.facebook.com/guy.daley.7 Guy Daley

    As long as the Federal Reserve and its proxies keep propping up the stock, bond and commodity Ponzi markets, who is going to notice and who is going to care?

    If the American public could only comprehend that THEY are financing the Ponzi scheme through the inflation tax they might actually protest a little between beers and during commercials.