Pandemic Accelerates Retail Collapse: Department Stores Shutting Down

The ongoing pandemic has led to a significant increase in online shopping, leading to what is being dubbed the “retail apocalypse.” Many popular department stores and major malls have been struggling to keep customers engaged before the pandemic, and the crisis has only exacerbated the problem, as reported by The US Sun on January 26, 2023.

Eddie Bauer is closing its Saratoga Springs, NY, store in December 2022; the reason for the closure is unknown. Macy’s has closed all of its 775 locations but is still operational online. Four stores are closing in California, Colorado, Maryland, and Hawaii this month.

JCPenney filed for bankruptcy in 2020 and plans to close 800 stores nationwide. Simon Property Group and Brookfield Property Group have agreed to acquire the company for $1.75 billion, but JCPenney has had to restructure its debt and close over 200 stores.

Old Navy’s State Street location in Chicago’s Loop closed its doors this week. Gap, Old Navy’s parent company, announced in 2020 that it plans to close 350 stores across North America by 2023. Banana Republic also closed a store in Kentwood, Michigan, this month, and more closures are expected.

Retailers of all types, including fashion, grocery, and home goods, have been hit by the trend of store closures. According to experts, it is expected that mid-range and high-end retailers will be the most impacted. Since 2016, 40% of department stores have shut down, and in 2020, over 60 major retailers, including Brooks Brothers, J. Crew, Sears, Lucky Brand, Forever 21 and Circuit City, have filed for bankruptcy, as reported by The US Sun.

FILE PHOTO: A woman looks on as she walks past cordoned off aisles of non-essential goods at a Walmart store in Toronto, Ontario, Canada April 8, 2021. REUTERS/Carlos Osorio