This year was a rough one for some major retailers, as illustrated by an 80% surge in store closures in 2023 from the year before, according to Coresight Research.
The reasons for this year’s more than 4,600 store closures are varied, ranging from the bankruptcy of a major retail chain to some operators closing underperforming locations. In some cases, retailers blamed rising theft for their rationale in closing some locations.
Against the backdrop of the closures are several trends weighing on some brick-and-mortar businesses. For one, Americans continue to shift to online shopping. And secondly, inflation-wary shoppers are cutting back on some types of purchases, such as electronics and jewelry.
But it’s not all doom and gloom in the retail sector, given that retailers actually opened almost 5,500 stores in 2023, more than offsetting the number of closures this year, Coresight’s data shows. In some cases, retailers moved into locations vacated by other businesses.
“Some of our best stores were created from carved-up Kmart or Sears locations,” Burlington Stores CEO Michael O’Sullivan said earlier this year, according to a local CBS affiliate. Burlington has taken over more than 40 former Bed Bath & Beyond spaces.
Read more at CBSnews.com
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