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7,000 Stores Closed in the U.S. in Six Months



In the second quarter, retailers left the shopping streets at the fastest rate since 2011.
Charming Charlie

In the first six months of 2019, more than 7000 retail stores were closed in the U.S. market, according to the report of research company Coresight Research. In the second quarter, the pace of retailers' exit from the shopping streets was the highest since 2011, analysts say. By July 18, the number of closings amounted to 7426 retail outlets. 

By results of all 2019, it is predicted that about 12 thousand retail objects will leave the market, which is almost twice as much as in 2018. Retailers are reducing their floor space both because of financial insolvency and as part of a business optimization program and the transition to online trading. At the beginning of the year, the U.S. Department of Commerce reported that online sales in the country were, for the first time in history, higher than in traditional retail. 

It is known that bankrupt retail chains Charlotte Russe and Charming Charlie will close in total about 800 stores. Gap, Fred's and Victoria's Secret have significantly reduced the number of retail outlets. At the same time, the share of vacant premises in shopping centers across the country is growing. While the occupancy rate for the most high-class objects is 97% on average, in the lowest segment of shopping malls, this indicator is at the level of 67%. Shopping centers owners often invite tenants of other profile to replace closed shops. 

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