US “retail apocalypse” expected to exceed annual high with more than 1,100 store closures announced in one day
9 March 2019
Within the first quarter of this year, the number of retail stores set to be closed already surpasses the total number of closures in 2018. Based on information from Coresight Research, more than 6,300 stores are already set to close in 2019. Coresight counted 5,528 closings in 2018 which included the liquidation of hundreds of Toys“R”Us locations in the US, and Kmart and Sears stores.
According to Coresight’s data the record year for retail closures was 2017 with 8,139 closures, but this could be easily exceeded if the current trend continues.
On Wednesday, Charlotte Russe, Family Dollar, Abercrombie & Fitch and Chico’s all announced store closings within 24 hours of each other, accounting for than more than 1,100 locations. The series of announcements came one week after JCPenney, Gap, Victoria’s Secret and Tesla announced that they would close retail locations, totaling more than 300 stores.
Drew Myers, senior consultant with real-estate data firm CoStar Group, told USA Today that “square footage” or the size of stores is a good indicator when analyzing store closures from a real estate perspective. When taking the size of retail stores into consideration, 2018 was the highest year for store closings during the retail apocalypse, with 155 million square feet of affected retail space. According to Myers, approximately 75 percent of total square footage came from Sears, Kmart, Toys“R”Us and Bon Ton.
Essentially, 2018 was a year marked by closures of larger retail chains with significant numbers of workers made jobless. While this year has only seen 30 million square feet of closures as retailers shutter…