U.S. Retail Bankruptcies and Store Closures in 2020
Please consider An Overview of U.S. Retail Bankruptcies and Store Closures in the first half of 2020
In the first six months of 2020, 18 retailers filed for Chapter 11 bankruptcy, with an additional 11 filing in July through mid-August . These defaults were concentrated in apparel and footwear, home furnishings, food and department stores, with many prominent retailers filing during this time period, including Pier 1, J. Crew, Neiman Marcus, Stage Stores, J.C. Penney, Tuesday Morning, GNC, Lucky Brand, RTW Retailwinds (New York & Co.), Brooks Brothers, Ascena (Ann Taylor, LOFT, Lane Bryant, Justice, Catherines), Le Tote (Lord & Taylor), Tailored Brands (Men’s Wearhouse, Jos. A. Bank, Moores Clothing, K&G) and Stein Mart.
From January through mid-August, there have been more store closure announcements in 2020 than the record 9,500 stores that closed throughout 2019. The majority of store closures have taken place in malls, which have seen far less foot traffic due to sustained COVID-19 disruption.
2020 is on track to set the record for the highest number of retail bankruptcies and store closings in a single year. Based on the trends set through mid-August, our expectation is that more retailers will struggle to navigate the effects of the pandemic—particularly those that are highly levered and mall-based.
Bankruptcy Filings July and August 2020
Bankruptcy Filings Second Quarter 2020
Bankruptcy Filings First Quarter 2020
Not Just Bankruptcies
Retailers on the brink of bankruptcy are not the only ones looking to shed their brick-and-mortar locations. In fact, there are more than 15 retailers that have not filed for bankruptcy—including Macy’s, Bed Bath & Beyond and Gap—that have announced the closing of 50 or more stores, totaling a combined 4,200+ stores.
Lord & Taylor, Brooks Brothers, Pier 1, J. Crew, Neiman Marcus, J.C. Penney, Tuesday Morning, GNC, Ascena (Ann Taylor, LOFT, Lane Bryant, Tailored Brands (Men’s Wearhouse, Jos. A. Bank, Moores Clothing, K&G) and Stein Mart are among the prominent bankruptcies.
Anchor Stores
JCPenney, Neiman Marcus, Lord & Taylor, and Sears are (or were) examples of mall anchor stores.
Nordstrom and Macy’s are struggling.
Consider this July 1 headline: Nordstrom cuts 6,000 jobs, reduces workforce nationwide amid 40% decrease in sales.
Malls are not what they used to be and never will be again.
Mish
Obama sold the country out to Wall Street and this is the result,a dead rotting 3rd world economy,Trump is just finishing it off with the leaf blower!
The biggest, oldest, most famous flea market in my state moved into an abandoned mall and what do you think happened in just 6 months? That’s right. IT DIED.
The flea, the market, or the mall?
Our county offices moved into a dead mall, and wouldn’t you know it, they went under too.
Those abandoned mall, stores, and offices will make dandy homeless shelters.
They’ll tear the mall down just to spite the squatters for not paying rent
Most of us despised malls from the first time we saw one, and NO they will not be missed.
Most of us despised malls from the first time we saw one, and NO they will not be missed.
Yes brick and mortar are suffering and Covid is speeding up the process. For a brick and mortar operation to succeed it can’t compete on price but on service and needs to focus on niche markets and customers in my view. Mass market electronics where margins are small or discount men’s suits will be the domain of the internet
I thought JC Penney cut a deal with the Simon Group to stay in business. They have been going out of business slowly for what? Decades, it seems like.
Malls were already in trouble….COVID is just the nail in the coffin, the co-morbidity factor being Amazon.
My guess is that malls will be missed after they’re gone…maybe they can still do okay in some special markets, but the days of every big city having half a dozen or more drive-to-and-park malls is close to being over, I think.
It has been a mixed bag, malls. It resulted in all the homogenization of American culture…….with people everywhere having access to the exact same retail goods…but not much besides what was in every mall everywhere.
It’s a real shame when you see a company like Nordstrom is on the list–which in reality is one of the last retail outlets that really push old-fashioned customer service that makes you feel wanted as a consumer. Those skills are being lost.
My wife will really miss Nordstrom’s.
I bought my Santonis there. Not sure where I’ll find my next pair, or whether there will even be a next pair.
There are some things I prefer to actually look at and shoes are one of them. I can buy some clothes on line if I know the manufacturer. There is no substitute for these certain items on line. Another trend that started years ago and irks me is these stores like Lowes and Home Depot that sell items with no display item to look at… or if they do have display models, like faucets and such, they are mounted on a display half way to the ceiling. I pissed off a Lowes stock “boy” once by unsealing the package to see the underside of a faucet to see what it was made of and how it was put together. “Ya see this here (sprayer from kitchen sink faucet), I already have one that only lasted two years. I am tired of buying junk”. Put it back in the box and walked out.