CEOs for Cities: What happens when thousands of stores close?

Could an upheavel in retailing - and the resulting closure of thousands of stores - create an opportunity for neighborhood retail?

The CEOs for Cities CEO Blog highlights a New York Times article on the consumer spending slump, the tightening credit markets, and the increasing bankruptcies of large retailers.

The writer brushes aside any possible problems for downtowns, focusing instead on stores such as Linens 'n' Things, Zales, and Lane Bryant that are almost entirely located in suburban big box and shopping mall environments.

He/she asks the question if the cutback in consumer spending - and $4 a gallon gas - will lead to the demand for more walkable neighborhoods, with new opportunities springing up around transit stops.

My contention is that, as long as the country is in a recession, the demand for walkable neighborhoods will not be driven by consumer spending preferences.

It may, however, be driven by consumers' lack of spending power.

Photo credit: Abandoned Kohls Food Store in Beloit, Wisconsin by Flickr user rocketjim54