American retail chains are going bankrupt and closing thousands of stores

Around 25,000 stores will be permanently closed in American malls by the end of the year.

U.S. shopping malls faced a wave of closures of famous brands in June as consumer activity declined. Retail businesses continue to be under severe pressure due to the problematic epidemiological situation in the country. 

Experts note that the events of June are a harbinger of more serious consequences of the crisis in the retail and shopping center market in the future. It is expected that about 25 thousand shops will be permanently closed in American malls in 2020, writes CNN Business. 

For comparison, in 2019, the country was closed about 9300 shops. But today, in light of recent events, customers continue to switch more actively to online shopping. Therefore, it is expected that the number of closures in the physical retail market will increase significantly. 

In June, the chain of restaurants and entertainment centers Chuck E. Cheese announced the closure of 45 locations amid the bankruptcy of its parent company CEC Entertainment. 

GNC, which has specialized in vitamin and nutritional supplements for 85 years, announced the bankruptcy and closure of approximately 1,200 of its 5,800 U.S. retail locations. 

Withdrawn two years ago, U.S. fashion giant Gap’s Hill City sports brand will cease operations by the end of 2020. 

The JCPenney network has announced the closure of 13 more department stores in addition to the 250 closures announced in May following the company’s bankruptcy petition. 

Spanish fashion retailer Inditex, the most significant player on the world market in terms of revenue, is preparing to close about 1,200 stores in two years and significantly refocus its business on online channels.