No Light at End of Retail Tunnel
The decline of physical retail stores isn’t expected to slow down any time soon, finds a Coresight Research report. U.S. retailers have announced 2,187 closings to date in 2019, including 749 Gymboree stores, 251 Shopko stores, and 94 Charlotte Russe locations. Payless ShoeSource also is reported to be considering its second bankruptcy.
Online retail growth, flat and declining sales, and rising interest rates play a role in the decline.
Bankruptcies also are continuing at a rapid pace “with the number of filings in the first six weeks of 2019 already at one-third of last year’s total,” the report states. And it’s likely we could see more closings this year, as a number of companies are currently in the bankruptcy process or on their way there.
Coresight tracked 5,524 closings in 2018, which included all Toys “R” Us stores and hundreds of Kmart and Sears locations. The record year for closings was 2017 with 8,139 shuttered stores.