Stores have been closing at an alarming rate this year, with the number of closings so far this year triple what it was during the same period a year ago, CNN reports, citing an analysis by the retail think tank Fung Global Retail & Technology.
In the latest round of closings, Sears Holdings announced today that it plans to shutter another 20 stores that have been losing money — 18 Sears locations and two Kmarts.
“There have been 5,300 store closing announcements through June 20, making it the second worst year on record at the six-month mark,” CNN reports. “The worst year ever for store closings was 2008 during the Great Recession, when Credit Suisse counted 6,163 closings. But 2017 is poised to easily surpass that.”
The report notes that online shopping sites such as Amazon have taken a toll. “But brick-and-mortar stores are also suffering from overbuilding,” CNN adds. “Retail bankruptcies have also soared. There are 345 retailers that have filed for bankruptcy so far this year, according to BankruptcyData.com, up 32% from the same time last year.”
“While many of the bankruptcies have been by small mom-and-pop retailers with one or two locations, plenty of major national retailers have also filed for bankruptcy,” the report adds. “RadioShack, Gymboree, Rue21 and Payless Shoes have all filed this year, and other retailers already in bankruptcy, such as The Limited, have closed all their stores.”