Going out of business: Some retailers have had to cease operations entirely.According to the terms of their bankruptcy, retailers may have to reduce services, liquidate some assets or even close some locations to cut costs and cover debts. Bankruptcy: If a business is in financial trouble and needs to reorganize its debts to continue operations, it can file for Chapter 11 bankruptcy protection.Permanently reducing locations: Many stores have had to permanently close some of their locations while keeping others open.Temporary closings: Some stores have closed their brick-and-mortar stores temporarily, sometimes shifting their efforts to their online store.Store closings have come in a variety of ways: Meanwhile, Bed Bath & Beyond and Buy Buy Baby? closed all Canadian stores and have now declared bankruptcy, with plans to close up shop in the U.S. Importantly, Nordstrom announced in March that it will close all of its Canadian stores by late June. With 2023 underway, major retailers have already announced more than 850 stores set to close this year across the country. Thanks to these efforts, 20 saw thousands of store openings.ĭespite the comeback, UBS analysts predict that around 80,000 U.S. In addition, many retailers took it upon themselves to adapt to shopper behavior by doubling down on online sales and introducing curbside pickup options. But it is also a result of consumers returning to shop in person. This was, in part, because many businesses had already shut their doors in 2020. Perhaps, unsurprisingly, 2020 broke that record, with more than 12,000 store closures in the U.S.Īfter an incredibly tough year, the pace of store closures slowed in 2021. Pandemic aside, the year 2020 was already set to be a tough one for many retail stores, as 2019 saw a record number (9,302) of permanent store closures in the U.S. Nevertheless, the impact on the economy is ongoing – and retail stores are feeling the impact. It’s been three years since the global coronavirus pandemic first caused a sweeping, unprecedented shutdown of activity in the United States (and around the world).
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