Record number of stores expected to permanently close this year
With an increase in online shopping, the coronavirus pandemic and an economic recession, up to 25,000 retail stores across the United States are expected to permanently shut their doors this year.
The report by Coresight Research says store closures could hit 25,000 for the year. (Source: WLFI, TUESDAY MORNING, CNN)
The report by Coresight Research says more than 4,000 stores have already said they will permanently close in 2020.
Consumer confidence and demand is expected to stall in the coming months, sparking additional closings, according to the report.
The largest number of closures are expected in apparel, retail and department stores.
JC Penney and Pier 1 Imports have already filed for bankruptcy and plan to close hundreds of stores.
GNC and Victoria's Secret are closing hundreds more.
More than half of the store closures are expected to take place at malls.
Indoor shopping malls have been struggling in recent years amid declining foot traffic and fierce online competition.
Coresight says retailers that were struggling to stay in business before the pandemic are unlikely to recover.