Another wave of store closings may be on way
The decline of brick-and-mortar stores isn’t expected to slow down, according to a new report.
Coresight Research released an outlook of 2019 store closures Wednesday, saying there’s “no light at the end of the tunnel.”
According to the global market research firm’s report, six weeks into 2019, U.S. retailers have announced 2,187 closings, up 23 percent compared to last year. Those closings include 749 Gymboree stores, 251 Shopko stores and 94 Charlotte Russe locations.
Factors influencing the closings include online retail growth, flat and declining sales and rising interest rates, according to the report.
Bankruptcies also are continuing at a rapid pace “with the number of filings in the first six weeks of 2019 already at one-third of last year’s total,” the report states. There’s “potentially many more (closings) on the way due to companies currently in the bankruptcy process and more on the horizon,” the report states.
If Charlotte Russe doesn’t find a buyer by Sunday, the chain plans to liquidate, according to a court filing. The company, which caters to young women’s fashion, has more than 500 stores in 49 states and Puerto Rico.
Payless ShoeSource reportedly is considering its second bankruptcy.
Coresight Research tracked the 5,524 closings in 2018, which included all Toys R Us stores and hundreds of Kmart and Sears locations. The record year for closings was 2017 with 8,139 closures.