Retail Apocalypse Continues: Bankruptcies & Store Closings Are Creating An Apocalyptic End Game
The retail apocalypse is causing bankruptcies, liquidations, and store closings that are fast spreading across the nation, and celebrated iconic brands are witnessing the inevitable collapse of their businesses as they shut down permanently. In this video, we analyzed a study that indicated that the catastrophic retail crisis reached record bankruptcies in the first half of 2020, and the economic collapse boosted by the sanitary outbreak is pushing the sector to the edge. In that sense, millions of jobs are permanently gone due to lockdown restrictions that deeply affected this industry.
In this video, the Epic Economist crew examined the impacts of the generalized retail meltdown and also listed some of the most popular stores that are closing doors for good. Mandatory store closures enacted by the government, social distancing rules, supply chain issues, and the upsurge in e-commerce sales have contributed to accelerate the collapse of brick-and-mortar retailers, provoking a massive wave of bankruptcies that is diving into the second half of the year as well. The reduction of foot traffic in shopping centers have affected stores in malls, which, as a consequence, also put their lives in jeopardy.
That is to say, the retail apocalypse has become so extensive that is causing a downfall of historical proportions. With almost no prospects for a recovery during the 2020 Recession, the sector is facing major challenges, and economic experts have been emphasizing that this is almost certainly the worst year in recent history for retail. By the end of August, 29 big retailers filed for bankruptcy.
In the first half of 2020, 18 major retailers filed for chapter 11 protection. Then, From July through mid-August, 11 more retailers filed, and the number of store closures is catastrophic. Moreover, the excessive debt, store saturation, high unemployment, and changing shopper behaviors can also be added to the reasons why stores in malls were hit particularly hard. Small businesses are struggling to survive until the holiday season, and many retailers are still relying on their physical locations to stay afloat during this recession. However, market experts indicate that critical changes should be put into place to prevent their extinction. The retail bankruptcy trend has been going on for a long time, which proves that despite the eruption of the health crisis, the US economy was already deteriorating long before.
Last year there were 22 retail bankruptcies filed. From 2017 to 2018, over 5,000 stores were closed as well. Historically, the most recent record for bankruptcies in this sector came in 2010 when 48 retailers filed for bankruptcy in the wake of the 2007-09 recession. this year is that the spike in bankruptcies was recorded immediately after the recession started in February, signaling that most of these companies were already experiencing difficulties, or – as people say – they already had “one foot in the grave”, the viral outbreak implications just drove them further down.
With that said, it is expected more bankruptcies to be filed in the coming years, even renowned specialists have stated that it’s very unlikely this is going to stop anytime soon. Amongst the brands that are cutting the number of their stores down, moving into online retail, or completely liquidating their assets are Tesla, Abercrombie & Fitch, Starbucks, H&M, Target, Gap, Forever 21, and many others.
Additionally, as bankruptcies are expected to climb, the financial pain will resonate in shopping malls and in the commercial mortgage-backed securities market, while forecasts suggest that more than half of all mall-based department stores will close by the end of 2021. These factors will pile up to higher the pressure on the markets, possibly prompting a financial crash, because there is a huge bubble that could burst due to the enormous rates of rental delinquency. Yet, another blow on the fragile US economy would severely affect its future, knocking it down into a deeper, scarier, and more complex depression.
The retail apocalypse is only one of the problems in the American economy, there are many other areas that we should also be watching. The downfall of retail is just a sign of the deterioration of the economy. The nation has been crumbling for years, only accumulating economic and financial trouble, but at some stage, the reckoning day will arrive.
In the meantime, keep in mind that the failure of many other sectors will only come later in the cycle, which means the US has gotten itself into a large-scale solvency crisis that it is beyond the Fed’s ability to overcome it. Taking all factors into account, it seems like nothing can stop this ship from sinking.
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Soon you’ll only be able to shop on Amazon, Walmart and eBay
@homertalk i gotta try everything on before buying
Only if you keep using them.
@homertalk ….No vaccine?..No shopping?….No problem…I have a good strong internet signal…✌🤓
Not for long. People need variety. We’ll get bored shopping @ the same places. People are going to want new experiences.
Don’t forget Dollar General!
bs on recession… A DEPRESSION ON UR WAY TO 3RD WORLD
Cali coming soon to a neighborhood near you (and me, and all of us…).
Point of correction. Most people in the 3rd world are not living in debt. But you are. That means you will be worse off.
9th world with 2 outs and two strikes!
Aldous Huxley – their making sure their bankruptcy is well worth it. Max out everyone of those cards before pulling the plug.
@Janie Miller That’s soo sad. Florida it’s so expensive, i had to move out from Florida
Win-WIn for the Billionaires and Big Corporations… they’re licking their chops seeing all the small businesses get wiped out.
Operation Skynet running smooth.
Startonix Finally….a comment on EE that actually makes sense.
Had we stayed on gold/silver standard we would not be here right now
Mike Hawk Really? We were on the gold standard when the Great Depression hit.
@William Wilson Still on gold, but the Federal Reserve was created in 1913. I think that was the turning point.
Planned by Amazon, big tech and Wall Street to crush middle class and take all the profits. Then the sheep will be fully controlled by the Elites.
Unfortunately truth 🥺
We could all boycott online shopping 🛍 for a while
That’s a peaceful protest 😉
Not necessarily – the strategy is the military stratocracy will
Sheeples! Baa baa
Don’t forget the bankers
I think retail have got it wrong, it’s mostly not fear of going shopping, it’s the experience. Who wants to wear a mask while shopping? Who wants to put hand gel on when you go into a shop? Who wants to be careful how close you get to another person?, Who wants to follow arrows around a shop to make sure your going in the right direction? And if you go for a coffee you have to do the same again. These are the reasons I don’t go to the shops anymore, not fear. It’s an unenjoyable drag.
It saves me money. I rush in and get the hell out.standing in line with a mask just makes me irritable.
Brian Matthews I’m in the U.K. and I’m one of the people that has refused to wear a mask.Never ever been asked to put one on whilst shopping.The shops over here would like you to wear a muzzle,but they think ,at the end of the day it’s your choice.
Welcome to the new normal.👍👍👍
FOOD SHORTAGE , UNEMPLOYMENT THIS IS A WORLD WIDE CRISIS
Soon enough the only places for food will be vending machines or boxed deliveries, wait and see if they purport a second wave…
Welfare checks will stop for Single Parents
Medicare, Medicaid, SS Cuts
Services at State Levels will be reduced
Schools and Universities in time will close.
NOW THAT WE KNOW; WE GON DIE; WE MIGHT AS WELL PARTY; ILL BE THE DJ https://www.youtube.com/watch?v=0uDpqQctTvE
@Vincent Kosik and Underdog
I went off grid in the mountains 3 years ago .. I need nothing from anyone or the scumbag blood drinking gov’t
Until one of your tools or whatever breaks
Good for you. Yet there are the other 99%. You don’t seem to care, which means that you are already dead.
@Braveheart How do you power the generator without an electric bill? Solar panel? And, how did you get the land?
Probably doesn’t own it or it’s in a national park. I’m not American though
I’ll be heading up there myself before s*** hits the fan
Any retailers relying on this holiday season for profit done drunk the V shape recovery kool aid.
Francesca Powell thats what im saying, the retailers are going to have huge numbers this holiday season
This holiday season is a dud. I work for a major grocer in texas. No one are buying costumes or candy. Just pumpkins. Its sad. Thanksgiving too. I can only imagine xmas.
@sandy m Instead of throwing money at costumes and candy this month I am buying lamp oil, wicks, globes, emergency candles, lighters. I guess it is my black out box. Money better spent I think. As far as turkey I bought it off season on sale and canned it. So I am good on turkey for the next five years LOL.
@Jen Likewise. My spending has been to stock my pantry, increase my “earthquake supplies,” and have cleaning/hygiene supplies on hand (when I can find them). Ready for when SHTF.
THE VOICE OF DOOM IS BACK!👏👏👏👏👏👏👏👏👏👏👏👏
Hey doom voice!
Its Happening !👏👏
@Bolnaz Mob what’s happening?
All need to quit denying the storm that is here now…30 trillion in debt, much?? Start thinking apocalypse, pandemonium, and mayhem when the grid shuts down and the food stores close…have you got a well?
Yes yes the voice of Doom is back hit me with the bad news
oh yeah, makes the bad news a bit easier to handle!
Yes!! this is the voice of Doom!!
Would you prefer the voice of Krusty the Clown from The Simpson’s? Hey kids! All the stores have closed down and the economy is in the toilet! We may have to turn to cannibalism and EAT sideshow Mel!
Kelly S so far Simpson’s have been pretty accurate with some of the predictions
The collapse has been inevitable, covid is just the excuse.
@BILL PURDY Bill,when we die whatever the cause may have been,thats when our time is up from being stillborn into ur 90s the spirituaal forces at work do not care what time it is when we think it is our time.
Covid didn’t cause this collapse. It accelerated. The collapse of US retail is not really a collapse. It’s an evolution. Brick and mortar were dying for the last decade. It’s not a surprise. Covid just fast tracked it. All shopping is online. The next movement will be cashless and plastic-less payments. The US is one of the few international countries that haven’t fully embraced contactless payments like Apple Pay or google pay. We still use plastic credit cards here and that is old school.
But back to COvId. Saw a comment on herd immunity. I think some ppl are misled by it. Herd immunity doesn’t mean everyone gets the virus and you automatically develop antibodies and survive and become immune. It follows more of the rule of Darwinism. You let the virus spread. SOME people get immunity but you and your family, if you cannot develop the immunity, you essentially die or if you live then your next offspring may be likely to die and are less likely to reproduce and less likely to pass on your genes that cannot develop the antibodies on your own. Then overtime, the POPULATION gets immunity not YOU. You’re the one that dies along with your family. It’s a means of natural selection. (Aka bible people don’t believe or want to read this. Cuz this is a myth ._.) but I’m sick and tired of ppl saying I want herd immunity so I can survive. Like bro. Herd immunity is essentially natural selection…it doesn’t automatically mean you get immunity, it means the population gets immunity. Aka if you can’t develop it, you shouldn’t have babies or have a family. You should do the greater good for humans and live in the mountains alone and let your genes die if the virus can’t kill you or if you do catch the virus, you shouldn’t seek medical attention. Needing Medication for covid only means you’re not fit for the next population. Lol
@Test Account That was educational,if not a rather stark way of seeing things i guess mother nature has her rules and laws.
@Test Account Bible believing people believe in “if a man doesn’t work, neither shall he eat”. An idea that has “only the strong survive” written all over it.
No. A collapse due to human behavior and mistakes is one thing. Having the entire non essential economy shut down by government order because of a biological crisis is something different. We are now treating these entities like it is their poor management. When it is not.
Man I woke up today with a really bad case of optimism. Now I feel much better. Thanks Epic. You’re the best.
But sad reality upon us
lol nice! It’s all a blessing in disguise! Stay positive. 🙂
@Alia Asfar lol hahahahahhahahahahahahahahhaha
An economy based on consumerism is destined for failure.
@Jonathan Swensen Not your time so much as your useful skills and what you can produce/grow. If there were no money, people would go back to bartering. People who can’t produce or have no useful skills would be poor. Those who have something to offer (skills/products), would do okay. Everyone has time. Not everyone has something useful to offer others.
@david carter The problem with consumerism is that too many people rely on debt for their purchases. Consumerism without debt may be okay since people would be limited according to their means. In fact, you could actually afford more without debt if you saved the money you needed for a purchase – make the interest work for you instead of against you.
@GTW I hear you loud and clear and agree somewhat. Unfortunately you are still missing my point and not worth an argument. The thing you are absolutely wrong about is, no, not everyone has time I can garauntee you that.
GTW no ones forcing anyone to borrow money
@bdsingletary I never said that they did.
Lucky to still have a job, but for how long is the question.
There are plenty of jobs out there. If you want to work, you can find a job. Many people prefer to sit on their fat butts at home. Covid is only an excuse not to work.
@Nonya Biznes You don’t have to work. Quit. There are plenty of others who would be more than happy to have your job.
@Larry Hubble We are hiring and cant ever get anyone to work.
It will be all hands on deck for AI jobs to replace the very people building it. That’s when lesser humans are truly disposable.
@Nonya Biznes You are right. I could get a job almost anywhere. No one wants to work. Yet I love the idea of having a job and trying to live a life as normal as possible.
THE VOICE: In the end, it doesn’t matter who wins the election, because no matter who wins, we are ALL gonna LOSE…jus sayin
@BILL PURDY If History teaches us Anything, it is that your comment is Correct. It is what it is.
InPursuit ofGoodness spot on
I saw this coming and I bought a farm. raise cows pigs and chickens. large garden. out of debt
something to think about
@Lady pilliwick ya,,I’m living on a hay farm,just temporary,in 6 months the job is over.maybe I’ll be homeless;possibly camping in a forest,etc,,oh well.
When was it ever any different?
Wow. As a child of the 1990’s, I grew up with malls and would spend my free time there from middle school til college – not just to shop, but to eat at the food court and hang out with friends. I can’t imagine a world without malls and retail stores. Online shopping just doesn’t compare to in-person shopping, especially when it comes to items like clothes, shoes, electronics, odds & ends, and novelty stuff (like Spencer’s Gifts)
Braveheart so how do you get utube and why do you have a phone or computer to comment on here, i respect your choices and wish you know il will just asking is all ?
@Vern phone on unlimited data .. I don’t have a computer .. you don’t need wifi with data on your phone ..
Braveheart so not completely “off the grid “ then old mate best of luck anyway i hope things go well for all of us!
The economy will turn around; it always does. It may not as do it as fast as impatient humans would like but it will. Where I live you can see the rise and fall of the economy through the decades in the buildings here. The downtown was built for the railway that was built in the late 1800s and boomed into the early 1900s. That went down with WW2. Then after WW2 the soldiers returned and it was rebuilt. You can see it in the different buildings. Along came the late 50s and early 60s. Not only did the downtown see new growth, they put in a Montgomery Wards, the city expanded to build plazas. Several were built throughout the city to accommodate people closer to their homes and there were a lot of homes being built for the returning veterans. Also back in the late 1800s to 1920s there were a lot of homes built as well. There were thousands of Victorian homes built and brick paved streets.
The plazas succumbed to the new mall that was built on the south east side. Looking at the old photos it was quite the modern mecca in its heyday. It even boasted a multiplex theater nearby. That was the 70s and there were a lot of well known restaurants such as Furrs cafeteria, Beni Hanna. On top of that other stores came in like Gordman’s. Kmart also arrived and the mall and plazas began to see less traffic. Then the new mall on the west side was built and the old one was abandoned. Walmart arrived and took the business from Kmart. The plazas were left empty. Now for the past ten years there has been a trend for stand alone stores. Target anchors the corner of a large plaza with a furniture store onthe other corner. Dillons anchors another with a Staples on the other corner. Walmart and its cohort Sam’s Club monopolize a huge area with a Panera next to the street and two other eateries. The mall is practically abandoned now as everyone moved out to be in stand alone sites. I suppose they wanted less competition. When there’s only one place to shop and only one or two places to eat you don’t give people much choice. This is beginning to backfire because people are shopping online and they don’t have to settle for just one retailer or drive all over. It’s not Covid that did business under, it was themselves. Amazon saw a need for what it provided. The ability to buy nearly anything from one place without leaving home. The future of retail can be saved if the businesses realize they have to build together again. Malls provided that. Plazas did as well. Having restaurants, theaters, entertainment, supermarkets and smaller department stores together will bring consumers out from their online world and provide much needed employment. I think it will take another five or more years but if they want to survive they’ll figure it out as they have in the past.
@Braveheart I live in a mountain town too, but I buy everything online, and I have a bunker if things turn ugly
“Its gonna be a dark winter”…
now is the winter of our discontent.
The news these days scares the hell out of me from the pandemic to the economic meltdown, it’s just too much to process. we are trying so hard to get back to our lives but everything seems so different.
To everyone out there, we will all come out of this stronger, smarter and better.
jx ta don’t bother it’s over. They are doing a total reset it’s all coming down. I know it I accept it.
most will not make it. I probably won’t even.
@Super hero it’ll be alright. you’ll get a better one man.
You’re wrong they want to take over the world the rich have control and they want to vaccinate us all Trump even said it he says he has his general ready and they have 100 million vials
@sane saint for the sheep who volunteer will be no mandatory anything .
how about repurposing these shuttered malls and stores into low cost housing for the homeless and poor ?
What? All that real estate and investment? For homeless?
Meh, here in aus, were busy building nice new apartment blocks and offices, who cares if all the old buildings are empty and abandoned and all the shops boarded up? Theres real estate agents making money! Money!
100 acres of prime farmland in a floodplain?
Who needs FARMS? When we can cover it and concrete and build high density housing on it?
Who needs roads, infrastructure? That cost money. More money to be had building houses that fall apart and need repairing before they even get moved into. Thats how you make money.
@Muckin 4on Chinese are buying the new Apts. chump
The funding for this fraud needs to be clamped down on.
Zoning restrictions would need to be changed, so I’m willing to bet that many politicians would either oppose it outright or find a way to line their pockets.
You will need verticle growing areas, might as well be the malls!
The end of materialistic sensuality, the party is over !
All these people that are working from home; do they really think that these companies are going too let them retire while working from home for the next 3-5 years. Hell no,
A.I or down sizing the pay will happened as we speak