Retail apocalypse

Retail apocalypse refers to the closing of numerous brick-and-mortar retail stores, especially those of large chains, beginning around 2010 and accelerating due to the mandatory closures during the COVID-19 pandemic. In 2017, over 12,000 physical stores closed due to factors including over-expansion of malls, rising rents, bankruptcies, leveraged buyouts, low quarterly profits outside holiday binge spending, delayed effects of the Great Recession, and changes in spending habits. American consumers have shifted their purchasing habits due to various factors, including experience-spending versus material goods and homes, casual fashion in relaxed dress codes, as well as the rise of e-commerce, mostly in the form of competition from juggernaut companies such as Amazon.com and Walmart. A 2017 Business Insider report dubbed this phenomenon the "Amazon effect," and calculated that Amazon.com was generating greater than 50% of the growth of retail sales. Dissenting economists and experts asserted that recent retail closures are a market correction, suggesting that "retail apocalypse" is a misleading phrase that instills insecurity in the 16 million U.S. retail workers. Research published by global retail analyst IHL Group in 2019 suggests that the so-called retail apocalypse narrative was an exaggeration, with "more chains that are expanding their number of stores than closing stores.” That year, retailers in the United States announced 9,302 store closings, a 59% jump from 2018, and the highest number since tracking the data began in 2012. Corporate bankruptcies and store closings increased significantly from 2020 due to the financial impact of the COVID-19 pandemic, with most retail stores, especially already struggling mall-based retailers, closing for extended periods of time. J. Crew, Century 21, Neiman Marcus, Lord & Taylor, Stage Stores, Stein Mart, JCPenney, Tuesday Morning, and Pier 1 Imports were among the retailers to file for bankruptcy during the pandemic.