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Residential and Manufactured Foreclosures Affect Retailers



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By : John Cutts    99 or more times read
The huge supplies of residential property and manufactured foreclosures in Modesto, California, not only affect homeowners, but also businesses, particularly those related to the residential property industry. One example is Philips Lighting & Home, which recently announced that it will be moving to another space that is smaller than its current location.

The retailer experienced growth during the housing market boom. However, when the number of Modesto foreclosed homes started increasing and the housing market crisis started peaking, the business suffered along with homeowners and other retailers. According to company officials, the move will help Philips adjust to the slowdown in the housing market. They also revealed that a smaller space will give them higher efficiency and will lower overhead costs.

The company has admitted that it does not need a large warehouse space, particularly now that foreclosed homes in California have reached record levels and most homeowners, who are its primary customers, are facing financial and ownership challenges. Philips will relocate to a southwest space near Granger Avenue. This will decrease the retailer's store space to 9,000 square feet from the 28,000 it used to occupy at McHenry Avenue.

According to real estate analysts, the change demonstrates the impact of increasing number of residential and manufactured foreclosures on businesses that have ties with the housing market in the area. They added that lighting businesses, particularly independent and smaller ones, are starting to shift from having warehouse-full inventories to smaller operations that can provide faster shipping.

The owners of the lighting retailer revealed that some customers initially feared that the business will not last, particularly during the time when supplies started outweighing the sale of foreclosure homes. However, the firm was able to make the correct adjustments that allowed it to stay in business despite a declining customer base. Part of these adjustments is moving to a narrower space and increasing the store's focus on energy efficient offerings.

Although residential and manufactured foreclosures continue to rise in Modesto, Philips has not stopped offering products that it has been selling since its inception, including furniture, outdoor and indoor lighting, home accessories, and home-related gift items. The firm also plans to hold a relocation sale to cut down its current inventory.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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