REUTERS/Mike Segar
- More store closures have already been announced in 2019 than in the entirety of 2018, according to new research.
- A report from Coresight Research shows that the retail apocalypse is continuing, with 5,994 store closures announced so far in the US this year, compared to 5,864 store closures in all of 2018.
- Some retailers including Fred’s and Family Dollar are closing select stores in a bid to stay profitable while chains like Payless have announced that they are shuttering all of their stores.
- One report predicted that 75,000 stores will have to close across North America by 2026 as reliance on e-commerce rises.
The retail apocalypse is raging on with almost 6,000 store closures announced so far in 2019 — more than the entirety of last year.
According to a new report from Coresight Research, US retailers have announced 5,994 store closures so far this year, compared to 5,864 store closures in all of 2018.
Pharmacy retailer Fred’s recent announcement that it will close more than 150 underperforming stores sees it join a growing list of retailers that are shuttering bricks and mortar stores in a bid to save money during the rise of e-commerce.
Charlotte Russe, Family Dollar, and Abercrombie & Fitch are among these stores, announcing the close of more than 1,100 stores in just 24 hours in March.
Victoria’s Secret, JCPenney, and Gap have also announced that they are shuttering dozens of locations
Read more: More than 6,100 stores are closing in 2019 as the retail apocalypse drags on — here’s the full list
And some brands are closing all of their stores completely. Payless announced in February that it was closing all of its 2,500 stores in North America.
Coresight Research CEO Deborah Weinswig predicted that this trend will continue. "The flood of store closures will likely continue for quite some time," she said.
An April UBS report predicted that 75,000 stores will have to close across North America by 2026 as e-commerce presentation is set to rise by 25%.
Read more: The retail apocalypse is far from over as analysts predict 75,000 more store closures
Coresight also noted, however, that some retailers are announcing new store openings. After going public earlier this year, Levi’s announced plans to open 100 stores in its fiscal year, which ends in November.
There have been 2,641 store openings announced this year, Coresight said, compared to 3,239 openings in all of 2018.
UBS predicted that clothing stores would take the biggest impact, facing an estimated 21,000 store closures — 71% of all clothing shops across the US.
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Source: Business Insider – sbaker@businessinsider.com (Sinéad Baker)