A tsunami of store closings is about to hit the US -- and it's expected to eclipse the retail carnage of 2017
1 January 2018
More than 12,000 stores are expected to close in 2018 - up from roughly 9,000 in 2017, according to Cushman & Wakefield.
A rash of bankruptcy filings and announcements to close stores are expected at the start of the year, when retailers are flush with cash from the holiday season.
The closings would push hundreds of shopping malls to the brink of death.
Retailers are bracing for a fresh wave of store closings in 2018 that is expected to eclipse the rash of closings that rocked the industry last year.
"Landlords are panicking," said Larry Perkins, the CEO and founder of the advisory firm SierraConstellation Partners. "The last year was pretty apocalyptic from a retail standpoint, and the macro issues haven't changed. There will continue to be a high degree of bankruptcies and store closures."
2017 was a record year for both store closings and retail bankruptcies. Dozens of retailers including Macy's, Sears, and J.C. Penney shuttered an estimated 9,000 stores - far exceeding recessionary levels - and 50 chains filed for bankruptcy.
