Retail apocalypse

The retail apocalypse refers to the closing of a large number of American retail stores beginning in 2016. Over 4,000 physical stores are affected as American consumers shift their purchasing habits due to various factors, including the rise of e-commerce. Major department stores such as J.C. Penney and Macy’s have announced hundreds of store closures, and well-known apparel brands such as J. Crew and Ralph Lauren are unprofitable. Of 1,200 shopping malls across the US, 50% are expected to close by 2023. The retail apocalypse phenomenon is related to the middle-class squeeze, in which consumers experience a decrease in income while costs increase for education, healthcare, and housing.

Since at least 2010, various economic factors have resulted in the closing of a large number of American retailers, particularly in the department store industry. Sears, which had 3,555 stores in 2010, was down to just 1,503 as of 2016, with more closures scheduled. Sears also owns the retail chain Kmart Corporation, which operated 2,171 stores at its peak in 2000, a number that has since dwindled to less than 750 with further closures planned.

The term "retail apocalypse" began gaining widespread usage in 2017 following multiple announcements from many major retailers of plans to either discontinue or greatly scale back a retail presence, including companies such as H.H. Gregg, Family Christian Stores and The Limited all going out of business entirely.The Atlantic describes the phenomenon as "The Great Retail Apocalypse of 2017," reporting nine retail bankruptcies and several apparel companies having their stock hit new lows, including that of Lululemon, Urban Outfitters, American Eagle.Credit Suisse, a major global financial services company, predicted that 25% of U.S. malls remaining in 2017 could close by 2022.

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