Almost 9000 Retail Stores Will Close This Year: Here’s the List of Businesses in Trouble
Almost 9000 Retail Stores Will Close This Year: Here’s the List of Businesses in Trouble by Daisy Luther – The Organic Prepper
Back in January, after the worst Christmas sales in a decade, I predicted that 2017 would be the year of the Retailpocalypse and that we’d see hundreds of retail stores closing.
Sadly, I was wrong.
We’re going to see thousands of stores closing.
According to a CNN Money report, more than 300 retailers have filed for bankruptcy already and we’re only halfway through the year.
Another report by Credit Suisse has an even gloomier prediction:
…around 8,640 stores in the U.S. will close by the end of 2017 — easily surpassing the number of stores closed in a year over the past two decades. (source)
When retail stores close, it affects everyone.
Even if you’re not much of a consumer, when retail stores close, it can still affect you.
- Higher rates of unemployment mean more competition for available jobs.
- When larger stores in a mall close, it often takes down the other stores with it.
- Thousands of newly unemployed people are adding even more weight to our already strained social safety net.
- Scarcity drives up prices.
Retail stores can be a glimpse at how our economy, in general, is faring.
Underserved communities have a lot of problems that are all rooted in the loss of their retail stores.
When consumers have to drive further for everything, that is like a tax on everything they purchase. Travel time, expenses, and wear and tear mean that they’re spending just a little bit more on everything they buy.
Often, people begin moving out of smaller towns that are bereft of retailers because it’s so inconvenient to purchase the things they want or need. Others leave because they lost their job and there were no other jobs available. Property values decline.
Mom and Pop stores that existed before the chain retailers arrived were often driven out of business. Fewer options mean higher prices at any stores still remaining.
As Michael Snyder of The Economic Collapse Blog wrote:
At this moment, the number of working age Americans that do not have a job is hovering near a record high. So being able to at least get a job in the retail industry has been a real lifeline for many Americans, and now that lifeline may be in grave danger.