More bad news for retail. According to this Business Insider report over 4,000 stores are closing (so far) in 2019. The slow death of the middle class combined with Amazon’s impact on local and national retail will only result in more closures as time goes on.
The staggering rate of store closures that has rocked the retail industry over the last couple years is expected to continue in 2019, with roughly the same level of closures expected this year.
Retailers closed a record-breaking 102 million square feet of store space in 2017, then smashed that record in 2018 by closing another 155 million square feet of space, according to estimates by the commercial real estate firm CoStar Group.
“This year we are predicting more of the same in the retail space,” said Drew Myers, a CoStar senior consultant.
Retailers have announced more than 4,000 store closures so far this year, according to an analysis by Business Insider. This list is expected to grow in the coming months.
Payless, Gymboree, Shopko, Performance Bicycle, and Charlotte Russe are responsible for the bulk of the expected closures announced to date. All four companies have filed for bankruptcy and announced full or partial liquidations.
Payless alone, which said this week it would liquidate 2,500 stores, accounts for more than half of the expected closures.
Sears, which recently emerged from bankruptcy, is also a key contributor to the closings. The company is expected to close 70 Sears stores and 50 Kmart stores this month in its third wave of closings since filing for bankruptcy in October.