25,000 U.S Stores Are Expected To Permanently Close In 2020 Due To COVID-19
Due to the coronavirus pandemic, 25.000 mall-based retail stores are expected to permanently close especially those which were financially at risk before the pandemic began.
Coresight Chief Executive Officer Deborah Weinswig told reporters, “If the anchor tenants close stores in the mall, other tenants are likely to follow suit,” creating a “ripple effect” with other apparel-chain stores leaving malls at serious risk.
The U.S. has the most retail-selling space per capita of any nation in the world and the least deals per square feet, a study by Cushman and Wakefield found.
Since mid-March, stores have been closed due to COVID-19. Although quarantine restrictions are being slowly lifted, stores remain closed or have limited services. As of June 5, an estimated 4,000 stores are expected to shut down completely including Victoria’s Secret and J.C Penny.
With these closures, 15 major retailers have filed for bankruptcies as they are losing revenue from the pandemic.