Retail stores across United States are closing down in quick succession like the recent announcement by large brands like Victoria’s Secret, JC Penny’s GAP, Payless Shoe Stores and several others. This sweeping urge by firms across different industrial spectrum to close down their retail sectors may soon leave American malls empty like it occurred in 2008. These firms would not have come under public eye if it would have been just one or two stores but the numbers by all were staggering as Victoria Secret announced that it will close down stores in 50 locations during 2019 while Gap declared that 230 namesake stores will be shut down over two year period.
Retail chain J.C. Penny declared that it will shut down 18 departmental stores followed by 9 furniture and home décor stores this year. As per report of Coresight Research around 4309 stores are likely to be shut down this year as per declaration during first couple of months. Besides the above mentioned firms other retailers that are closing down stores include Anne Taylor, Charlotte Russe, Payless ShoeSource and Gymboree.
Electric car maker Tesla too has announced that it is planning to cut down some of its retail sales outlets and will carry out all sales transactions online. Buyers of their cars can take the vehicles they are interested in on a trial run for 2 weeks and return it if they don’t want to buy. Jan Kniffen of retail consulting firm stated that though there 1200 shopping malls in the United States only 250 of them are in great shape and this current spate of closures does not bode well for their future. He said that though the year has just started the number of closures announced now are way ahead of numbers announced last year. In 2018, Coresight’s team tracked around 5524 stores that announced closure that was 30 % above last year.