Retail Store Closures Pick Up Speed, Says Report
The preeminent trend in the national retail sector is a wave of bad news coming in harder and faster than before. Store closures, according to a recent report by the Fung Global Retail and Technology Tracker, have seen an eye-popping 218% increase over the previous year.
The Fung Global Retail & Technology Tracker watches store openings and closures “for a select group of retailers.” The most recent report cited losses
Payless and Radio Shack top a long list of closures
Department and specialty stores accounted for most of the pullback, according to Fung Global. The retail research firm tracks store openings and closings for a select group of companies on a weekly basis.
Specifically, RadioShack, the Fort Worth, Texas-based electronics retailer, and Payless Inc., the value-priced shoe retailer based in Topeka, Ks., led the store closing tally with 1,000 and 512 respectively. RadioShack is in the final stages of liquidating and winding down its stores for good, after the company filed for bankruptcy for the second time in two years. The two companies have exemplified the troubles of retailers vying with Internet sales channels to win over consumers and remain profitable.
News Not All Bad: Dollar Stores Are Opening
The same report also found that announced store openings were at 2,573, up 20 percent from the previous year:
The retail sector is used to seeing store openings from off-price sellers like Burlington and the Framingham, Mass.-based TJX Inc. chains, as well as value-oriented retailers including Dollar Tree, Aldi and Lidl.
With 111 scheduled openings, TJX accounts for the third largest number of planned new stores in the United States. The company operates the brands T.J.Maxx, Marshalls, HomeGoods and the forthcoming HomeSense. It was behind Aldi, with 130 planned new stores, and Dollar Tree, with 650 new stores.
Photo source: Fung Global