25,000 Retail Stores Are Expected to Close This Year
June 9, 2020
The coronavirus hit the retail industry hard and could result in as many as 25,000 retail stores closing this year. According to research from Coresight, 2020 is on track to see 20,000-25,000 stores shuttered, with the bulk, 55-60%, being situated in malls.
The number would more than double 2019’s record-breaking year, which saw more than 9,300 locations close. The virus has of course made the situation worse, but even projections earlier in the year, before the outbreak, forecast 15,000 closures.
The year has already seen retail giants like Neiman Marcus and J.C. Penny file for bankruptcy, and analysts say there are likely more to come. Coresight has already recorded 4,000 closures this year.
The glut of closures has some analysts concerned about the commercial real estate industry and some landlords wondering what to do with all the vacant space.