More than 25,000 stores could close this year, new report says

Expect more going-out-of-business sales in 2020.

As many as 25,000 stores could shutter this year as businesses continue to feel the impacts of the coronavirus pandemic, according to a new report from Coresight Research.

The global market research firm previously estimated 15,000 stores would close this year following a record number of closings in 2019 and the liquidation of chains like Payless ShoeSource, Gymboree and Dressbarn.

“We anticipate that approximately 55%-60% of all store closures will be mall-based,” Coresight said in the report released Tuesday. “The coronavirus outbreak could accelerate a correction in mall space that already looks overdue.”

COVID-19 has hit retailers who were already in debt harder than others and bankruptcy filings have increased due to the pandemic with J.C. Penney, Neiman Marcus and J. Crew recently filing for Chapter 11.

Pier 1 Imports is closing all of its stores in bankruptcy after previously planning to close half of its stores. Victoria’s Secret plans to permanently close approximately 250 stores in the U.S. and Canada this year.

Closing sales are expected to begin this week at the first wave of 242 J.C. Penney stores that will permanently close in bankruptcy.

Coresight expects more bankruptcies will also be filed.

Permanent store closings due to COVID-19

These retailers are permanently closing stores.

Bath & Body Works: 50 stores J.C. Penney: 242 locations Nordstrom: 16 stores, three boutiques

Pier 1: All locations, 541 remaining stores

Tuesday Morning: 230 stores Victoria’s Secret: 235 U.S. Victoria’s Secret and three Pink stores