Permanent store closures in the United States could affect up to 25,000 units this year. Analysis by Coresight Research, released by Retail Dive, shows 55-60 percent of these divestments are located in malls. Many of the larger mall units remain empty
Forecasting between 20,000 and 25,000 closures would double that of shuttered stores in 2019. Coresight research shows 4,005 stores have closed so far in 2020.
“Clothing retail and department stores play a major role in total store closures,” Deborah Weinswig CEO and founder of Coresight said.
In the United States, the coronavirus pandemic has aggravated the situation of bricks and mortar retail, already undermined by financial pressures. In recent months the alarm was raised by Peter Solomon, founder of the investment bank and financial services company PJ Solomon, who explained in an interview how only retailers within the reach of Walmart and Target can think of carrying on business without excessive relapses. Particularly worrying, according to the analyst, is the ‘department store scenario’, whose players today already appear “crushed by debt”.
“Once again the pandemic has accelerated everything, and, with the addition of a recession, the forecasts are more dramatic today,” says Retail Dive. In April, Green Street Advisors predicted more than half of U.S. department stores in shopping centers could potentially close by the end of 2021.”
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