Retailers are expected to continue closing stores at a record pace this year, a trend not expected to abate anytime soon. Credit Suisse estimates more than 8,600 retailers will close by year’s end.
So far this year, 2,880 retail locations have made the closure list, which is more than double the closings announced during the same period a year ago. In 2017, at least 10 retailers have already filed for bankruptcy, compared to just nine for all of 2016.
Another problem for 19 distressed retailers is a wall of debt coming due that’s set to more than double over the next two years, according to Moody’s Investors Service.
The closing trend is being driven by over-storing and increased online shopping. People are comfortable buying online now, since retailers offer free shipping and they can return items that don’t fit without paying return shipping costs in many cases.
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