Up to 10,000 retail stores in the US are predicted to close this year, according to new research
- A Coresight Research report predicts a 14% increase in store closures from 2020 to 2021.
- The pandemic has taken a huge toll on brick-and-mortar retailers overall.
Coresight Research released a report on Thursday estimating that the US may see as many as 10,000 retail store closures in 2021.
The research firm's report detailed a 2020 year in review for US and UK stores and looked ahead to what's facing the retail industry this year.
Looking back at 2020, Coresight's report found that US apparel stores suffered the most, with 3,151 closures. In the UK, 2,450 major retail stores closed and 477 opened last year.
Overall, Coresight found that major retailers shuttered 8,741 stores in 2020. And analysts predict that 2021 may see a 14% increase in closures to bring retail closures up to 10,000.
Amid the projected closures, however, the research firm projects a few bright spots.
It predicts as many as 4,000 stores will open in the US during 2021, driven in part by discount stores including Dollar General. It also said that 2020 was a good year for discount retailers in the US, with 1,669 openings. And across the pond, grocery stores did well in the UK in terms of numbers of openings.
But overall, the coronavirus pandemic has been devastating for brick-and-mortar retailers.
Business Insider has kept a running list of stores facing major closures in 2020 and beyond. Among them are the department store Lord & Taylor and the sporting goods store Modell's, both of which are closing all their stores. 2020 also saw major retailers from J. Crew to JCPenney filing for bankruptcy.
Earlier in January, Insider reported that the judge who presided over the bankruptcy filing for J. Crew and other major retailers, including Neiman Marcus, also projected a continued rocky road for retail in 2021.