Over 3,500 stores, many in malls, will close in the next few months according to Business Insider, which tabulated the list based on news reports.  Leading the list is Payless, estimated to be closing around 1,000 stores, but the big hits to malls will come from anchor stores such as Sears and Kmart (closing 150 stores), JC Penney (closing 138 stores), and Macy’s (closing 68 stores, see “Barnes & Noble Holiday Sales Plummet”).

It was a particularly tough holiday season for brick and mortar department stores, but the underlying issues have been around for a long time, according to the report, which points out that the U.S. has 23.5 square feet of retail space per person, vs. 16.4 square feet of retail space per person in Canada, the second most stored country. 

Mall visits have been declining rapidly, with a 50% decline between 2010 and 2013.  Stores like Barnes & Noble, Gamestop, and FYE cited declining store visits as reasons for their poor Q4 sales (see “Riggio Lays Out Factors Behind Retail Declines,” “Gamestop Closing 150 Legacy Stores,” and “FYE Same Store Sales Continue to Decline”). 

Malls are stressed by the loss of tenants, with some undoubtedly closing, and others battling vacancies. 

Retailers selling geek categories can resist these trends because their customers are devoted, according to a study on the future of retail by Synchrony Financial as reported by Chain Store Age, which said that despite massive changes in retail by 2030, “specialty retailers will remain a go-to in high-involvement categories.” 

Chains are obviously seeing these trends, as mass merchants such as Target and specialty retail chains such as Barnes & Noble, Gamestop, and FYE all expand their sales of geek categories. 

Experiences at retail are another way to keep customers coming in, with complimentary sampling, food and beverage sales in retail stores, and entertaining experiences all seen as ways for retailers to avoid getting replaced by other forms of retail, according to the study.