Former Saks CEO Steve Sadove on the state of the retail industry and the border adjustment tax.

With retailers across America going through layoffs and bankruptcy and malls shutting their doors, the former Saks CEO Steve Sadove said “Brick-and-mortar is undergoing a fundamental change” during an interview on the FOX Business Network on Thursday.

“You have too many stores. You probably have double per capita the number of stores in this country than you do in let’s say, Europe. So you have too many stores and you have less consumers that are shopping in the stores because they are on the Internet,” Sadove said on Varney & Co. “Having said that, the consumer is very healthy. Retail sales are up 4% in the last quarter. They’re just not doing it at a Brick and Mortar store; traffic in the malls is down mid to high single digits.”

Sadove said the U.S. will see a lot more “ghost malls” as the lower tier malls close, but noted that the high end malls will continue to…