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This year, US retailers announced the closure of 5,994 stores. This number already exceeds the 5,864 closing announcements announced last year, according to a recent report from Coresight Research.
Payless, Gymboree, Charlotte Russe and Shopko have all declared bankruptcy this year and will close together 3,720 stores, according to the report. The majority of them are due to Payless, which filed its second bankruptcy in February and announced at the time the closure of 2,100 stores in the United States.
Other retailers, such as Family Dollar, CNG (CNG), Walgreens (WBA), Signet Jewelers (GIS), Victoria's Secret and JCPenney (JCP), struggle and reduce their store footprint to save money.
Family Dollar will close 359 stores this year, while Signet Jewelers, the parent company of the Kay Mall, Jared and Zales, will close 159.
Even thriving retailers such as Target (TGT)and Walmart (WMT) quietly close a handful of their stores – although these companies are also opening them. And department stores such as Nordstrom (JWN), Kohl (KSS) and Macy & # 39; s (M) open a few shops each.
Thousands of additional closures could occur in the coming years, with online purchases replacing purchases made in physical stores.
"Flooding of store closures is likely to continue for some time," said Deborah Weinswig, executive director of Coresight Research.
Online sales now account for about 16% of retail sales, but they will reach 25% by 2026, according to a research report released last week by UBS analysts.
This could force up to 75,000 stores to be closed by 2026, including more than 20,000 clothing stores and around 10,000 consumer electronics stores, according to UBS. Thousands of home furnishing and sporting goods stores will also have to close as online shopping grows rapidly.
Some retailers are opening stores, however. The Coresight report indicates that this year, retailers announced the opening of 2,641 stores. The discount business in particular is growing: Dollar General has announced the opening of 975 stores this year.
Meanwhile, eccentric discount chains like Ollie's Bargain Outlet (OLLI) and Five below (FIVE) are expanding. Discount grocery stores Aldi and Lidl are also planning to open hundreds of stores in the United States to reach customers who buy cheap groceries.
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