Number of the Day Shows Record Store Closings
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That’s at least how many store closings have been announced by U.S. retailers this year, already more than the record 9,500 that closed in all of 2019, a new report shows.
Twenty-nine retailers—including J.C. Penny, Neiman Marcus, and GNC—filed for bankruptcy through mid-August, contributing 5,998 of the 10,226 store closings tracked so far this year, according to accounting and advisory firm BDO. The remaining 4,228 reflect retailers such as Starbucks, Gamestop, and AT&T, which closed hundreds of stores but did not file for bankruptcy. (Outside of bankruptcies, BDO only tracked retailers who had announced closing at least 50 stores in the first half of 2020.)
The majority of closures have taken place in malls, where the COVID-19 pandemic continues to disrupt foot traffic, BDO said in a report released last week. But the public health crisis, which triggered government-mandates, supply chain problems, and an even bigger shift to online shopping, only added to problems brick-and-mortar retailers were already facing, the report said.
If you have a store credit card for a retailer that’s going bankrupt or closing stores, here’s what you need to know about your balance, purchase rewards, and future use.
BDO. "Retail in the Red: BDO Bi-Annual Bankruptcy Update." Accessed Sept. 29, 2020.