Retail Stores Closure Saga Continues; Over 6000 Closed So Far In 2019

Though it’s just fourth month of the year, it is announced that this year the retailers of United States will close around 6000 stores, which are more in the number of closures done than last year, which will become a big problem for mall owners.

In August 2018, the foot traffic was in poor condition at some of the well-known shopping centers. But a recent report given by firm Thasos’s data analytics said that after the changes were done last year the conditions are getting improved. Thasos uses 100 million and more mobile phones for keeping a track of customers who are entering and leaving the trade area.

The chief product and co-founder officer of Thasos, John Collins said that as many retailers had come back and drawn many shoppers through 2018 promotions, so it was good news for many malls.

By adding the fact of online purchases done by people, Collins said that not giving the discounts is also a big reason for reduced foot traffic at malls.

The landlords were hoping that new experiences will put more excitement in shoppers before going to the mall, but these activities were failed as no evidence was found which showed this activity as useful.

According to the tracking report of real estate initiated by Coresight Research, the announcement was done by US retailers that while opening 2,641 stores, 5,994 will be closed.

This report is much larger than Coresight’s last year report, according to which 3,239 openings and 5,864 closings were announced. These stores which are to be closed include hundreds of retailers of clothing market like Charlotte Russe, Victoria’s Secret, Gymboree, and Gap. They also include 2000 and more Payless ShoeSource which has been filed for non-payments.

The companies which are going to open their stores are Five Below, Levi’s, Dollar Tree and Ollie’s Outlets. Coresight predicts that the outlook is not getting better according to reports. The CEO and founder of Coresight, Deborah Weinswing said that she is expecting store closures to hit a range of 12,000 till the end of the year 2019.

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