Don’t expect brick-and-mortar retail to escape from the discount rack this year, a new report warns.
An analysis released this week predicted that as many as 10,000 retail stores could close nationwide in 2021, Business Insider reported. The study, by Coresight Research, found that 8,741 retail stores shut their doors last year, led by 3,151 apparel store closures.
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Last year was a bloodbath for on-the-ground retailers. The pandemic exacerbated competition from e-commerce, and job losses and restrictions on non-essential shopping threw salt on the wound.
Examples were everywhere. One in every seven chain stores closed in New York City in 2020. Brookfield Property Partners, a major mall owner with 170 retail properties in 43 states, laid off 20 percent of its retail division in September. Store closures from Macy’s, Bed Bath & Beyond and Gap alone accounted for 4,200 store closings.
Analysts predict that closures in 2021 could increase by 14 percent, but there are some segments of retail doing well. Discount stores like Dollar General will add 4,000 stores in 2021, the report estimated. Such stores typically fare well during a recession; 1,669 opened last year. Grocery stores are also expected to fare well.
[BI] — Georgia Kromrei