This morning’s announcement of Abercrombie’s failed sale process served as a startling reminder of just how toxic mall-based retailers have become to investors in the post-Amazon era. News that not a single suitor was willing to touch the once high-flying, teenage-catering, cologne-infused, mall-based wonderland has wreaked havoc, yet again, today on retail apparel chains, with Abercrombie down over 20% and several others plunging to new all-time lows.
Of course, it’s not just the specialty apparel stores that are getting crushed. As we’ve noted several times in the past, the beloved anchor tenants of mall REITs have been among the hardest hit as a new generation shoppers have shunned over-priced department store products.
As the Wall Street Journal points out today, department stores like Macy’s, Sak’s and Lord & Taylor are even being forced to discount their last bastion of hope in order to lure customers into their dying stores: cosmetics.
Desperate to get shoppers in the door, department stores are discounting the one item they had long been able to sell at full price: cosmetics.
This post was published at Zero Hedge on Jul 10, 2017.