Store Closings and Bankruptcy Filings
2017 provided to be a record year, however, not in a good way for retail! More the 600 bankruptcies were report in 2017 and the announcements of store closings more then tripled to about 7,000. No one has been spared as names like Sear, Kmart, J.C. Penney and Macy’s all announced store closings while names such as Toys R Us, Payless and The Limited all filed for bankruptcy.
Even with all the turmoil of 2017, it doesn’t appear to be over and the number of store closings is expected to continue to increase throughout 2018. It is anticipated that we could see another 20+ retailers filing for bankruptcy in 2018 alone. We have already heard Gap, Banana Republic, J. Crew and Teavana have announced store closing and Walmart, announcing that they will close 63 of the Sam’s Clubs that fall under their umbrella.
Even with the all the announcements of stores closing and Bankruptcies’, well-positioned service oriented retail is still a solid area for investors to be focused on.