Retailer bankruptcies and store closings are a major issue for the global economy as the full impact of the Pandemic becomes known. As well, the evolution of U.S. retailing continues to be propelled by consumer preferences for online sales and additional factors including nation-wide civil protests.
The financial pressure on retailers is obvious as scores of companies are taking the Chapter 11 (or 7) bankruptcy route to gain time for weighing their respective options. Industry experts believe retailer bankruptcies and store closings will continue throughout 2020, perhaps well into the next several years.
We keep an updated listing of bankruptcy filings and major stores closing as news comes in, adding the latest on key shopping center and mall tenants. We also include companies that provide at-retail services, fast food, restaurant chains, and fitness clubs.
As an industry, this is not the first time we’ve seen major shifts in consumer preferences, substantial economic events, and in particular, changes in the most popular retail place-product types. The department store-anchored regional mall began its demise a decade or more ago. The rise of retail power centers and the big box “category-killer” stores a decade before that was part of the cause. Remember 280 Metro Center in Colma, California – the world’s first “power center” (1986), malls based upon category-killer big boxes – that seems like truly ancient history at this point. Decades earlier, the rise of the suburban shopping mall caused the demise of main street shopping – although many years later those same main streets were repurposed and revitalized as a next-generation form of shopping. And did we mention lifestyle retail centers?
More recently, retail has become more properly classified as retail-entertainment as the considerable appeal of location-based entertainment has found a home in malls everywhere. There are many more such examples; consumers and their ever-evolving preferences make survival difficult for any retailer thinking their business approach has a long-term life cycle.
Our latest tracking is provided in the table below. We welcome your suggestions and updates!