Coronavirus Could Set Off a Wave of Store Closings
Retailers are taking steps to help limit the spread of the coronavirus, but for some, those efforts could mean that the stores they close never reopen. The problem of store closings, which was carried over from 2019, can only be exacerbated by an outbreak that keeps people at home.
Stores that depend on daily sales to pay utilities and rent are in a difficult situation. Retailers operating such stores may find themselves with no option but to close them. That could make 2020 another record year for store closings.
Retail store closures this year are now on pace to be “double what we saw last year,” which was a record year, said Deborah Weinswig, CEO and founder of retail advisory and research firm Coresight Research. “I think that is already in motion. … If [COVID-19] stays longer, it will be greater.”