'THIS IS A DEATH SPIRAL': The tsunami of store closures is doubling in size

pulse

June 2, 2017 3:25 PM

About 2,000 store closures have been announced just within the last six weeks, bringing the total number of planned closures this year to nearly 5,100.

Rolling Acres Mall in Akron, Ohio.

Retailers are closing stores at a staggering rate.

That number is expected to keep growing, and reach more than 8,600 before the end of the year, according to Credit Suisse.

"Store closings have accelerated, even in tier-one markets," Credit Suisse analysts wrote in a recent research note.

Major department stores such as Macy's, JCPenney, and Sears are among those shutting down stores, along with retailers like Payless, Rue21, Michael Kors, and Bebe.

at the University of Connecticut's Center for Real Estate,

Credit Suisse expects 20% to 25% of malls — to shut down over the next five years as a result of all the store closures happening this year.

As malls decline, the communities around them tend to follow suit.

Many local economies will be reeling from the effects of the closures for years, but they have been a long time coming in the US, where the amount of retail space per capita far outweighs any other country in the world.

Retailers that don't close enough stores won't survive through the upheaval happening in the industry right now, according to Credit Suisse.

pulse