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.

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