10,000 stores set to close in 2021, Kovid retains retailers

A man passes through the Banana Republic store, which is going out of business, on January 10, 2021 in New York.

Scott Milne | Cnbc

A retail research and advisory group is forecasting that there may be 10,000 store closures announced by retailers in the United States this year, which will set a new record, as Kovid continues to take a toll on the epidemic industry and how companies rethink They are able to keep many places open.

The 10,000 closers would represent a 14% increase from the 2020 level, Corsight Research said in a report released on Thursday. Coresight is also anticipating retailers will announce 4,000 store openings in 2021, driven by growth from grocery discounters and dollar store chains.

Last year, in the thick of the epidemic, Cortite predicted in June that there would be as many as 25,000 closures announced by retailers in 2020. But it tracked only 8,741 with 3,304 openings. This was a slump from the 9,832 closures tracked in 2019 – the highest number of crores seen as long as it continues to follow retail closings and openings.

The reason for the large difference between the final tally and its initial prediction, Corsight said, is because some companies “have been out for a boom in store-based sales.” Many retailers have also called for being able to remain open for some time by reducing their rent and being able to buy striking deals with their landlords for more.

“In 2021, rollout of [Covid] Vaccination programs should result in a partial improvement in store-based sales, “said Corsite CEO and founder Deborah Wavewig. However, these programs may take several months to reach a wider base of consumers.”

Some companies will not be able to wait much longer, Weinswig said, especially not the holiday season they were hoping for. He said consumers will continue to spend more of their money online, which is another reason for the store’s closure forecast this year.

As of January 22, Coresight said that retailers in the US have already announced 1,678 closures, including Bed Bath & Beyond, Macy’s and Jessie Penney.

Weinswig pointed to a pattern taking shape in the retail industry following the Great Recession, which may repeat itself this year.

“Although retail was significantly affected in 2008 and 2009, the results were extreme in terms of retail insolvency in 2010.” “We can see history repeating itself in 2021, resulting in a greater number of stores seen this year in 2020.”

Corasite said apparel retailers, including Asena Retail Group and The Children’s Place, accounted for 36% of all store closures in 2020, matching more than 3,000. The apparel category is likely to be a big part of the closure this year, too, it said.

A study released earlier this week by First Insight found that 40% of consumers planning to shop for apparel at a brick-and-mortar store either have the same amount or less after getting vaccinated, which means There will be no immediate crowd at the mall.


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