So while the big-city closures may capture national attention, in reality they’re often part of closures a brand implements across the nation.
The trend became popularized as the “retail apocalypse.” Perhaps most key is the glut of stores in America.Īccording to Morgan Stanley, from 1995 to 2021, more stores closed every year than opened. Several trends have converged to put these stores at risk. What’s more, experts agree, the closures aren’t just about crime. San Francisco, Los Angeles, San Diego, New York City, Seattle, Miami and Chicago lost retail stores from the beginning of 2017 to the end of 2021, according to research from the JPMorgan Chase Institute, a think tank. What Walmart's pullback from Chicago says about Corporate America's limitsĪnd instead of a strong correlation with crime rates, the closures aren’t also a recent phenomenon. is closing four stores in Chicago, halving its footprint in the city, after losses mounted and the retailer abandoned hope of turning the locations around. “Maybe we cried too much last year” about shrink numbers, a Walgreens executive said in January.Ī Walmart location on 2551 West Cermak Road ahead of permanently closing in Chicago, Illinois, US, on Wednesday, April 12, 2023. Walgreens said it saw a spike in losses, known as shrink, during the pandemic and cited organized retail crime in its decision to close five San Francisco stores in 2021.
People who are being employed in those stores are losing their jobs” because of crime, New York City Mayor Eric Adams, a Democrat, said in February.īut the impact of shoplifting may have been overstated in some cases. “We’re losing chain stores that are closing down. Some of those policymakers, including both Republican and Democratic leaders, have pointed to crime as a chief reason for the closures, following videos of brazen shoplifting incidents. How policymakers remake their downtowns - with retail as a crucial attraction - will be crucial to cities’ fiscal health and regional economies. “Once become true urban neighborhoods, then you will find retailing start to come back in different ways and forms,” said Terry Shook, a founding partner at consulting firm Shook Kelly. That means denser neighborhoods with a broader mix of affordable housing, experiential retail, restaurants, entertainment, parks and other amenities, which won’t happen overnight. A remaking of downtowns will create stronger retail conditions. Major retailers have pulled back from cities.
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