I’ve recently received several similar e-mails from family and friends warning me of upcoming store closures.  The e-mail mentions that the “Security Exchange” had been notified of all upcoming store closures to occur between October 2008 and January 2009.  Consumers are supposed to be particularly careful about purchasing gift cards at such stores because they apparently may not be around after January to honor those gift cards.


At first glance the e-mail seems legitimate because virtually everyone receiving it can recognize some familiar names - some of which are known to be closing - in their own neighborhoods.  Circuit City is on top of the companies closing shop but in actuality, they have announced that only 20% of their stores will be closing.  Other stores mentioned in the ridiculous e-mail were Eddie Bauer, GAP, Foot Locker, Ann Taylor, Disney, Home Depot, Macy’s, Sprint Nextel, Linens N Things and others.  But the bottom line regarding store closings is that stores close all the time and new stores open all the time, regardless of how the economy is doing. Stores that do poorly will close their doors, and successful stores will have new grand openings across the country.

So what exactly is the point of this e-mail?  If it is only a reminder to be careful with purchasing holiday gift cards, then I have a better idea.  Don’t ever purchase any gift cards, period, regardless of store closings! If you feel inclined to give a gift to someone and you just can’t decide what to buy, then give them a wad of cash in lieu of a gift card.  If a wad of cash is good enough for the mafia, then it is good enough for your giftees. A wad of cash can be spent without limitations throughout the world, where a gift card serves no purpose other than forcing your giftee to buy something they ultimately did not want and at a store they do not like.

And the other point of this store closing e-mail? It could be a number of things, including scare tactics to stop consumers from shopping and buying (perhaps the authors of the e-mail are shorting General Growth stock and other retailers), boredom, insanity, stupidity or a simple desire to waste time.

And what about the Security Exchange notification? - Quite simply, there is no such thing as the “Security Exchange”.  There is another government agency called the Security and Exchange Commission (SEC), but their mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation”, and not be burdened with concerns for store closings.

Action Items for Readers - Delete those stupid store closing e-mails, and get out their and SPEND, SPEND, SPEND.  Your country and the economy needs you!