Throughout 2019, retail sales have been collapsing in the United States and in the United Kingdom. Last year, in the USA they shut down 9,300 stores, a record-breaking number indeed. Not “so many” if we compare such figures to the UK. In fact, in London and its surroundings they shut down over 16,000 stores. Apocalypse Retail goes on relentlessly then, and might continue throughout 2020 as well.
16,073 stores shut down in Great Britain
In the United Kingdom, 2019 was appalling for retail: actually, it was one of the worst in the last 25 years. According to a report carried out by the Centre for Retail Research and published by Drapers, 16,073 stores shut down, therefore 10.2% more compared to 2018. In the retail business, they lost 143,128 jobs overall. In other words, over 2,750 jobs every week. According to CRR expectations, if British government does not support big retailers, in 2020 they are bound to lose over 171,000 job positions. Joshua Bamfield, Centre for Retail Research manager, remarked that retail sales are facing “a crisis” because of soaring costs, low profitability and decreasing sales. Who is accountable for that? Most of all online business, of course. “By the end of 2020, 17,566 stores will have shut down, therefore increasing by around 9%”, predicted Bamfield.
9,302 in the United States
Apocalypse Retail goes on relentlessly in the USA as well. According to recent estimates, provided by Coresight Research, in the United States 9,302 stores shut down throughout 2019 (up to 20th December 2019). That is, nearly 60% more compared to 5,844 stores closed in 2018, more than twice the new openings (in 2019, they inaugurated 4,454 new shops, 1,000 more compared to 2018). Payless has been driving such figures. In fact, the footwear retailer shut down about 2,500 stores, nearly 25% of the overall closures estimated by Coresight: in other words, they went through the biggest retail wind up ever. Likewise, as highlighted by Retail Dive, Gymboree, Fred’s, Shopko, Charlotte Russe and Charming Charlie have closed hundreds of stores each. John Mercer, research supervisor at Coresight, announced, while speaking to Retail Dive, that closures might slow down in 2020, after 2019 peak.