Store closures plummeted after the holiday shopping season
The number of permanent store closures in the aftermath of the holiday shopping season has plummeted, compared to the same period last year.
Why it matters: The plunge comes at a time when many stores historically close up shop, indicating the holiday season buoyed a sector that was facing an existential crisis earlier in the pandemic.
- Retailers announced 742 store closures Jan. 1–28, down 65% from the same period in 2021, according to a new report by Coresight Research, which tracks retail closings.
Yes, but: One reason for fewer closures in 2022 is that so many shops closed in 2020 and early 2021, with major bankruptcies including JCPenney, Neiman Marcus and Brooks Brothers.
Meanwhile: The data comes as e-commerce companies and online direct-to-consumer brands have launched brick-and-mortar store strategies.
- Online eyeglass retailer Warby Parker has talked about opening 700 more physical stores in the coming years, while Amazon is launching its first-ever physical apparel store later this year in Los Angeles.
What we're watching: Whether the wave of store closures has truly slowed, and whether retailers have found a new balance in their online and brick-and-mortar strategies.