Idaho-based Albertsons closed 43 Houston-area stores earlierthis year. That along with closings from several other nationalchains, including Kmart and Service Merchandise, account for thebackslide. "This is what we were waiting for," Richard Zigler,director of research at Houston's O'Connor & Associates tellsGlobeSt.com.

Zigler believes the impact of the closings is "not that bad" andexpects the retail market to post positive absorption numbers bynext quarter. "We anticipate that the months ahead will bring aheadbetter times," he said in the latest Houston Retail PerformanceUpdate. "While some of these abandoned locations may stay dark fora prolonged period, the big-box players appear relatively healthy.After all, it is this strength that rendered many of the outgoingstores superfluous."

Zigler is quick to point out the closings were not indicative ofa soft Houston retail market. Albertsons was driven out by itslocal competitors, he says. Of the 43 stores that closed, nearly 30were scooped up by the remaining giants of the Houston grocerybusiness, Randall's, Kroger and H-E-B. He's also quick to point outthat the Kmart and Service Merchandise closings were due tonational not local problems.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.