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.