Updates on the Brick & Mortar Meltdown

Updated: Apr 15


Tariffs are on the rise, retail rents are down or being renegotiated, and retail debt is being restructured. It is entirely possible we have not even seen the gas pedal get hit on the problems brick and mortar retail is facing and systemically causing. The Commerce Department recently reported that first quarter e-commerce sales rose 12.4% year-over-year to $127.3 billion. This puts e-commerce on track to hit $575 billion in 2019, an increase of $61 billion over 2018. At this point, e-commerce sales have effectively doubled in the past five years. When gas, auto, grocery and beverage stores are taken out, e-commerce represents 23.6% of the remaining 48% of retail sales.  Moreover, Business Insider recently updated the list of store closings announced in 2019, which has topped more than 7,000. Here is the updated list:

  • Payless Shoes - 2,500 stores

  • Gymboree - 805 stores

  • Dress Barn - 650 store 

  • Charlotte Russe - 520 stores

  • Family Dollar - 390 stores

  • Shopko - 371 stores 

  • Chico's - 250 stores

  • Gap - 230 stores

  • LifeWay - 170 stores

  • Performance Bicycles - 102 stores

  • Sears - 70 stores

  • Destination Maternity - 42-67 stores

  • Z Gallerie - 17 stores

  • L Brands (Victoria's Secret) - 53 stores

  • Office Depot / OfficeMax - 50 stores

  • Kmart - 50 stores

  • CVS Health - 46 stores

  • Party City - 45 stores

  • The Children's Place - 45 stores

  • Pier 1 Imports - 45 stores

  • Abercrombie & Fitch - 40 stores

  • Bed Bath & Beyond - 40 stores

  • Christopher & Banks - 30-40 stores

  • JC Penny - 27 stores

  • Beauty Brands - 25 stores

  • Henri Bendel - 23 stores

  • Lowe's - 20 stores

  • Z Gallerie - 17 stores

  • Walmart - 12 stores

  • Macy's - 9 stores

  • J Crew - 7 stores

  • Kohl's - 4 stores

  • Nordstrom - 3 stores

And UK based Topshop, a clothing retailer, recently announced that it will be closing 11 US stores as part of a rescue and restructuring package. Despite one expert's seemingly misguided belief that, "They will slow if for no other reason than a lot of the most troubled retailers have already filed bankruptcy," it's safe to say that one can expect more trouble coming to a retailer near you.

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