The substantial stress facing the retail industry has caused thousands of store closures over the last several years, and dozens of retail bankruptcies. The “retail apocalypse” is not over, and numerous factors and circumstances suggest that retailers’ struggles and difficulties will persist. Some have prognosticated that brick and mortar is dead; it is not dead, although the physical shopping experience is changing.
State of the Industry
There have been nearly 20 large retailer bankruptcies as of mid-2019 including Barney’s, Payless Shoes, and Gymboree, compared to 25 such bankruptcies in 2018, 37 in 2017, and 18 in 2016. Based on Debtwire data, from 2016 to mid-2019, more than 100 larger retailers ($50 million+ in liabilities) filed for bankruptcy.
