Retail Apocalypse Could Wipe out Scores of Department Stores in 2023

A wave of closures may be coming for US department stores. That’s according to analysts at UBS, who predicted this week that national chains could have to shutter some brick-and-mortar locations in 2023 – even those that survived the combined challenges of the retail apocalypse, which devastated the industry from 2017 to 2020, and the pandemic shutdowns. That’s because months of inflation and a looming recession are eating into sales at mid-tier retailers, analysts say.

“These trends are likely not good for department stores as both luxury companies, as well as off-price retailers, compete directly with department stores,” UBS analysts Jay Sole, Mauricio Serna, Shoshana Pollack, and Tiffany Agard wrote. “We expect department stores to close locations as challenges persist.”

Even before the pandemic hit in early 2020, retailers were struggling. The decade prior had been disastrous for American retail companies, particularly malls and department stores: As many as 9,300 stores closed in 2019 alone, the result of these brands being saddled with mountains of debt at a time when shoppers were increasingly turning to e-commerce.

Then the pandemic struck, and the industry was hit with an unprecedented number of store closures — according to UBS, the retail industry lost 1,800 stores between January 2020 and March 2021.

www.businessinsider.in/retail/news/the-retail-apocalypse-isnt-over-its-coming-back-to-bite-department-stores-experts-warn/amp_articleshow/96260856.cms

We are primarily funded by readers. Please subscribe and donate to support us!
Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.