Brick-and-mortar shops have had a tough time in recent years, and experts say major retailers are expected to continue closing stores at a rapid pace. Last year saw a big jump in closures — the largest since the pandemic — and an even bigger jump is expected in 2025.
About 15,000 stores may close this year, according to data from retail analysis firm Coresight Research. As of mid-January, major retailers had "already announced 1,925 store closures," said CNBC. JCPenney, Joann, Macy's, Party City and Walgreens are among the most well-known chains that have announced closings. Meanwhile, Amazon, Costco and Walmart have "gotten bigger as shoppers seek value and convenience."
Financial hardships like "bankruptcies, liquidations and chains leaving unprofitable locations will be the catalysts for most of the store closings," John Mercer, head of global research at Coresight, said to The Washington Post. Consumers now "seek out stores that offer better deals and a smoother shopping experience." Many industries are also still working to reorient from the "height of the pandemic, when consumer spending rose and leases for retail space were discounted," Mark Cohen, the former director of retail studies at Columbia Business School, told the Post.
These closings mark a "structural shift in the retail landscape," Coresight CEO Deborah Weinswig said to USA Today. Digital marketplaces are "offering rock-bottom prices and instant access to products that once drove foot traffic to physical stores," making it harder for brick-and-mortar shops to keep up. |