Sunday, May 24, 2015

Mom-and-pop stores keep going broke: report

The shopping center business won't recover until mom-and-pop stores are able to raise money more easily, writes Janney analyst Andrew DiZio.

Mom-and-pop stores keep going broke: report

Big-store chains, which raise money in the bond market and can borrow for record lows, have more or less stabilized since the economic slump began in 2008 -- but "mom and pop" stores that raise money from banks are still having a tough time, and continue to go out of business or delay expansion plans, writes Janney Capital Markets analyst Andrew DiZio in a report to clients today.

"Many local businesses, or 'mom and pops', are still struggling, and those who are having success cannot secure financing to expand," DiZio writes. "Entry-level" franchise chains like Subway and Payless are adding stores, but data from major shopping center landlords shows small-shop occupancy in general has fallen up to 10% in the last two years. Shopping centers as a group won't recover until small shop lessees come "back," he concludes.

About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano