The impact of economic shutdown on American businesses may be worse than many originally thought. Thousands more retail stores are likely to close for good by the end of the year.
A new report predicts 20 to 25 thousand physical stores won't survive 2020. That's a historic low. It also means the thousands of retail workers who no longer have a job will feel the effects of the shutdown long after the country has fully re-opened. Marie Driscoll is Managing Director of Luxury & Fashion at Coresight Research, a global research and advisory firm specializing in retail and technology.
“Jobs will be lost, but retail still employs many people,” Driscoll said. “The National Retail Federation are looking at modules for training people to work in the distribution centers.”
Driscoll says many of the big stores who have filed for bankruptcy protection like Neiman Marcus and JCPenny are finding other ways to use their smaller workforce as retail has gone largely online.
More than half of the retail shops predicted to close are in malls. So, they're closing may have a negative effect on other businesses in proximity.