Despite Tuesday’s announcement by Sears Holdings that they will soon close up to 120 stores nationwide, the trade group Colorado Retail Council says it expects holiday sales to increase about 3 percent compared to the same time last year.
Chris Howes, a lobbyist and president of the group, says the retail industry will be extremely competitive in 2012.
“You’ll continue to see some deep discounting and that will create a lot of volume,” he says. "But at the end of the day will that business pocket enough profits after all the volume sales are done to stay in business?”
Howes says for retailers to survive in 2012, they must take advantage of efficiencies and inventory control.
But the Sears—and subsidiary brand Kmart—store closures will have a ripple effect in Colorado’s economy. Howes estimates that on average department stores employ up to 200 people.
There’s no word yet if any of the Sears closures will impact Colorado.
